Here's Why Carnival (CCL) Fell More Than Broader Market
The most recent trading session ended with Carnival (CCL) standing at $23.87, reflecting a -2.61% shift from the previous trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.27%.
Prior to today's trading, shares of the cruise operator had gained 7.78% outpaced the Consumer Discretionary sector's gain of 6.45% and the S&P 500's gain of 6.9%.
The upcoming earnings release of Carnival will be of great interest to investors. The company is predicted to post an EPS of $0.23, indicating a 109.09% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.2 billion, up 7.19% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.86 per share and revenue of $26.05 billion, indicating changes of +30.99% and +4.12%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Carnival. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.62% upward. Carnival currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Carnival is presently trading at a Forward P/E ratio of 13.19. For comparison, its industry has an average Forward P/E of 20.25, which means Carnival is trading at a discount to the group.
It's also important to note that CCL currently trades at a PEG ratio of 0.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 1.49.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CCL in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Carnival Corporation (CCL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
an hour ago
- Business Insider
3 Economic Events That Could Affect Your Portfolio This Week, June 16-20, 2025
Stocks clocked in weekly losses as Middle East hostilities flared up. The Dow Jones Industrial Average (DJIA) lost 1.32% for the week, returning to negative territory year-to-date. Meanwhile, the S&P 500 finished down 0.39%, and the tech-heavy Nasdaq-100 (NDX) lost 0.60% for the week. Confident Investing Starts Here: The week unfolded positively through Thursday, with stocks lifted by better-than-expected economic data and a strong showing in tech shares. June's University of Michigan consumer sentiment survey showed that households are feeling much less pessimistic about the inflation outlook, with the consumer sentiment index strongly rebounding in its first improvement in six months. Cooler-than-expected consumer and producer inflation reports lifted Fed cut expectations and investor spirits, as the data reflected no visible impact from tariffs on prices. On the trade front, there were no major headlines, with gradual progress seen in U.S.-China trade discussions, and deals with India, Mexico, and Canada progressing in parallel. The 'no scoop' atmosphere around tariff issues supported investor calm. However, after stocks inched up near their record highs, a re-intensification of geopolitical risk – just as U.S.-China trade tensions subsided – pulled markets lower. Global stocks fell and oil prices surged on Friday, as Iran sent missiles into Israeli cities after Israeli airstrikes hit Iran's nuclear and military facilities. Gold and the U.S. dollar rose as investors searched for safe havens. The flare in Middle East tensions is a wild card for the Federal Reserve, which is having its rate policy meeting this week. After several months of oil price declines exerting a disinflationary effect on headline price indexes, this backdrop is about to change. Iran produces about 3.3 million barrels of oil per day, accounting for roughly 3% of global output. A total production shutdown could push global oil prices above $100 per barrel, with worst-case scenarios seeing spikes up to $130 – especially if the Strait of Hormuz, a chokepoint for 20% of global oil shipments, is disrupted. Although a strengthening USD can act as a partial counterweight, dampening inflation through lower import costs, the extent of its effects is limited. The futures markets still foresee no change in Fed rates at the coming meeting, and the chances for a July cut have risen only marginally. However, the central bank's path to interest rate cuts starting in September appears to have widened. Three Economic Events TipRanks Economic Calendar. » May's Retail Sales – Tuesday, 06/17 – This report indicates how much consumers are spending on durable and non-durable goods. Retail Sales is a leading indicator of economic health, offering insight into the current quarter's economic growth and the inflationary pressures stemming from consumer demand. » May's Industrial Production – Tuesday, 06/17 – This report, released by the Federal Reserve, shows the volume of production of U.S. industries like manufacturing, mining, and utilities. Although industrial production accounts for a smaller portion of the economic activity than services, its sensitivity to consumer demand and interest rates makes it a leading indicator of GDP growth and economic performance. » May's Building Permits and Housing Starts – Wednesday, 06/18 – These reports provide valuable insights into the health of the housing market, as well as the overall economy since housing demand correlates with economic growth and consumer sentiment. Both reports are leading indicators, used by economists and analysts, among other data, to measure current demand and to estimate near-term trends in real estate and related industries.
Business Insider
an hour ago
- Business Insider
The Week That Was, The Week Ahead: Macro & Markets, June 15, 2025
Everything to Know about Macro and Markets Stocks clocked in weekly losses as Middle East hostilities flared up. The Dow Jones Industrial Average (DJIA) lost 1.32% for the week, returning to negative territory year-to-date. Meanwhile, the S&P 500 finished down 0.39%, and the tech-heavy Nasdaq-100 (NDX) lost 0.60% for the week. Confident Investing Starts Here: Risk On/Off The week unfolded positively through Thursday, with stocks lifted by better-than-expected economic data and a strong showing in tech shares. June's University of Michigan consumer sentiment survey showed that households are feeling much less pessimistic about the inflation outlook, with the consumer sentiment index strongly rebounding in its first improvement in six months. Cooler-than-expected consumer and producer inflation reports lifted Fed cut expectations and investor spirits, as the data reflected no visible impact from tariffs on prices. On the trade front, there were no major headlines, with gradual progress seen in U.S.-China trade discussions, and deals with India, Mexico, and Canada progressing in parallel. The 'no scoop' atmosphere around tariff issues supported investor calm. However, after stocks inched up near their record highs, a re-intensification of geopolitical risk – just as U.S.-China trade tensions subsided – pulled markets lower. Global stocks fell and oil prices surged on Friday, as Iran sent missiles into Israeli cities after Israeli airstrikes hit Iran's nuclear and military facilities. Gold and the U.S. dollar rose as investors searched for safe havens. Fed Ahead The flare in Middle East tensions is a wild card for the Federal Reserve, which is having its rate policy meeting this week. After several months of oil price declines exerting a disinflationary effect on headline price indexes, this backdrop is about to change. Iran produces about 3.3 million barrels of oil per day, accounting for roughly 3% of global output. A total production shutdown could push global oil prices above $100 per barrel, with worst-case scenarios seeing spikes up to $130 – especially if the Strait of Hormuz, a chokepoint for 20% of global oil shipments, is disrupted. Although a strengthening USD can act as a partial counterweight, dampening inflation through lower import costs, the extent of its effects is limited. The futures markets still foresee no change in Fed rates at the coming meeting, and the chances for a July cut have risen only marginally. However, the central bank's path to interest rate cuts starting in September appears to have widened. Stocks That Made the News ▣ Oracle (ORCL) surged over 21% last week, driven by robust fiscal Q4 2025 earnings and a bullish outlook for fiscal 2026. The company reported an 11% year-over-year revenue increase to $15.9 billion, surpassing analyst expectations. Notably, cloud infrastructure revenue soared 52%, reaching $3 billion, positioning it as Oracle's fastest-growing segment. CEO Safra Catz projected cloud infrastructure growth to accelerate from 50% in fiscal 2025 to over 70% in fiscal 2026, with total cloud growth expected to exceed 40%. These optimistic projections prompted several analysts to raise their price targets, with Deutsche Bank describing the results as a 'watershed moment for Oracle's cloud pivot.' ▣ Tesla (TSLA) rose over 4% last week, supported by incremental product news and renewed investor optimism. The company refreshed its Model S and Model X vehicles with several upgrades alongside a $5,000 price hike aimed at lifting margins and reinforcing Tesla's premium market positioning. CEO Elon Musk also announced a tentative June 22 launch date for Tesla's robotaxi reveal in Austin, fueling speculative interest in its autonomous roadmap. Separately, Musk's public softening toward Donald Trump helped ease political risk concerns. The gains capped a bullish week for the stock amid broader market negativity. ▣ Defense and aerospace stocks surged on Friday amid escalating tensions between Israel and Iran. Investors sought safety in military contractors following Israel's large-scale airstrikes on Iranian nuclear and military sites. Lockheed Martin (LMT), RTX Corp. (RTX), Northrop Grumman (NOC), and L3Harris Technologies (LHX) were among the few bright green spots on the stock performance heatmap on Friday, as the broader market declined on geopolitical fears. ▣ Another notable group in the green was energy stocks, boosted by a jump in crude oil prices as concerns spread about possible supply impacts from the escalating conflict in the Middle East. Shares of refiner Halliburton (HAL) surged by 8.3% over the week, independent producer Diamondback Energy (FANG) added more than 7.6%, and integrated giant Exxon Mobil (XOM) gained 5.3%. ▣ Shares of payment processors, including PayPal (PYPL), Visa (V), and Mastercard (MA), fell by more than 3.5% over the week after a media report indicated that retail giants Walmart (WMT) and Amazon (AMZN) are considering issuing their own stablecoins, a move that could help them avoid the interchange fees charged by credit-card providers. The Q1 2025 earnings season is over, but several notable earnings releases are still scheduled for the next few days. These include Lennar (LEN), Jabil (JBL), Kroger Company (KR), Accenture (ACN), Darden Restaurants (DRI), and CarMax (KMX).
Yahoo
2 hours ago
- Yahoo
Cathie Wood sells $9.5 million of popular AI stocks after big rally
Cathie Wood sells $9.5 million of popular AI stocks after big rally originally appeared on TheStreet. Cathie Wood is known for making bold bets on the future of technology, and just as known for cashing out when the timing feels right. In the past week, the chief of Ark Investment Management trimmed some high-flying stocks, including one stock that's skyrocketed more than 270% and another that's climbed over 80% year-to-date. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 Wood's funds have been through a volatile ride this year, swinging from strong gains to sharp losses, and now back to outperforming the broader market. In January and February, the Ark funds rallied as investors bet on the Trump administration's potential deregulation that could benefit Wood's tech bets. But the momentum faded in March and April, with the funds trailing the market as top holdings—especially Tesla, her biggest position—slid amid growing concerns over the macroeconomy and trade policies. Now, the fund is regaining momentum. As of June 13, the flagship Ark Innovation ETF () is up 8% year-to-date, outpacing the S&P 500's 1.6% gain. Wood had a remarkable gain of 153% in 2020, which helped build her reputation and attract loyal investors. Still, her long-term performance has made many others skeptical of her aggressive style. As of June 13, Ark Innovation ETF, with $5.5 billion under management, has delivered a five-year annualized return of 0.4%. In comparison, the S&P 500 has an annualized return of 16.2% over the same period. Wood's investment strategy is straightforward: Her Ark ETFs typically buy shares in emerging high-tech companies in fields such as artificial intelligence, blockchain, biomedical technology, and robotics. Wood says these companies have the potential to reshape industries, but their volatility leads to major fluctuations in Ark funds' Ark Innovation ETF wiped out $7 billion in investor wealth over the 10 years ending in 2024, according to an analysis by Morningstar's analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott's ranking. Wood recently said the U.S. is coming out of a three-year 'rolling recession' and heading into a productivity-led recovery that could trigger a broader bull market. In a letter to investors published in late April, she dismissed predictions of a recession dragging into 2026, as she expects "more clarity on tariffs, taxes, regulations, and interest rates over the next three to six months." "If the current tariff turmoil results in freer trade, as tariffs and non-tariff barriers come down in tandem with declines in other taxes, regulations, and interest rates, then real GDP growth and productivity should surprise on the high side of expectations at some point during the second half of this year," she wrote. She also struck an optimistic tone for tech stocks. "During the current turbulent transition in the US, we think consumers and businesses are likely to accelerate the shift to technologically enabled innovation platforms including artificial intelligence, robotics, energy storage, blockchain technology, and multiomics sequencing," she said. Investor confidence has wavered. Over the past year, the Ark Innovation ETF saw $2 billion in net outflows, as some investors grew wary of volatility and underperformance. But in a potential sign of renewed interest, the fund brought in $250 million in fresh capital between June 7 and June 12, according to ETF research firm VettaFi. On June 11, Wood's Ark funds sold 55,829 shares of Palantir Technologies () . That chunk of stock was valued at roughly $7.6 million. Palantir is known for providing AI-driven data analytics software to the U.S. government, military, and commercial clients company reported stronger first-quarter revenue in May and raised its full-year outlook as demand for AI tools increased. 'We are delivering the operating system for the modern enterprise in the era of AI,' CEO Alex Karp many tech stocks have struggled this year, Palantir has stood out. Its shares are up 81.7% in 2025 and just hit a record close of $137.40 on June 13. Much of the recent momentum comes from its government work. Back in May 2024, Palantir won a $480 million, five-year U.S. Army contract to build its Maven Smart System, which is a battlefield AI prototype. Last month, the Defense Department modified the contract, increasing the licensing ceiling from $480 million to $1.275 billion. Palantir's Foundry platform has been adopted by at least four federal agencies, including the Department of Homeland Security and the Department of Health and Human Services, according to a New York Times report published May 30. Fannie Mae also announced a partnership with Palantir in May to work on AI-based fraud detection. Palantir remains a core position for Wood even after recent sales. The stock is now the 8th largest holding in the ARK Innovation ETF, accounting for 4.7%. Wood said in February that she's moving away from hardware and infrastructure and doubling down on software, with Palantir as one of her top picks. 'Palantir is a very expensive stock, but there's nothing like it in the software space,' Wood said in a CNBC interview. 'It is, we believe, going to dominate the biggest part of the tech stack when it comes to AI. And that's the platform as a service part of the stack.' Another big trade Wood made on June 11 was selling 12,728 shares of CoreWeave Inc. () , valued at roughly $1.9 million. CoreWeave is a cloud infrastructure company specializing in GPU-accelerated computing for artificial intelligence and machine learning workloads. The company has delivered explosive growth and won support from Nvidia and March 28, CoreWeave launched its initial public offering, which was one of the largest AI-related listings since 2021. Since then, the stock is up more than 277%. That company is now Nvidia's largest holding, making up more than 78% of its disclosed portfolio. In the first quarter this year, Nvidia bought 24,182,460 shares after the IPO, according to data from WhaleWisdom based on 13F filings. On May 14, CoreWeave reported better-than-expected revenue on Wednesday in the company's first earnings release since going public. CoreWeave reported a 420% year-over-year revenue increase to $981.6 million for the first quarter. Despite this growth, the company's net loss widened to $314.6 million from $129.2 million a year earlier, partly driven by $177 million in stock-based compensation linked to its IPO. Bloomberg reporter Ryan Vlastelica commented that CoreWeave and Palantir are drawing comparisons to meme stocks after sharp rallies. But unlike GameStop, both are backed by strong demand. Still, valuations are a concern. Palantir trades at 71 times estimated sales, the highest in the S&P 500. CoreWeave, despite a $315 million loss last quarter, is valued at 10 times projected sales, well above the S&P 500's average of 3, Bloomberg reported. CoreWeave is not in Ark Innovation's top 10 holdings. Wood's recent trades also include buying shares of GitLab () , selling Kratos Defense () and Roblox () .Cathie Wood sells $9.5 million of popular AI stocks after big rally first appeared on TheStreet on Jun 15, 2025 This story was originally reported by TheStreet on Jun 15, 2025, where it first appeared.
