Carnival Corporation (CCL) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of Carnival (CCL)? Shares have been on the move with the stock up 14.7% over the past month. The stock hit a new 52-week high of $24.83 in the previous session. Carnival has gained 32.4% since the start of the year compared to the 11.3% move for the Zacks Consumer Discretionary sector and the 18.4% return for the Zacks Leisure and Recreation Services industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on September 30, 2024, Carnival reported EPS of $1.27 versus consensus estimate of $1.17 while it beat the consensus revenue estimate by 1.04%.For the current fiscal year, Carnival is expected to post earnings of $1.31 per share on $25.19 billion in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $1.66 per share on $26.07 billion in revenues. This represents a year-over-year change of 26.78% and 3.51%, respectively.Valuation MetricsCarnival may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Carnival has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.In terms of its value breakdown, the stock currently trades at 18.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 21.8X. On a trailing cash flow basis, the stock currently trades at 10.9X versus its peer group's average of 10.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Carnival currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Carnival fits the bill. Thus, it seems as though Carnival shares could have potential in the weeks and months to come.How Does CCL Stack Up to the Competition?Shares of CCL have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is OneSpaWorld Holdings Limited (OSW). OSW has a Zacks Rank of # 2 (Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of A.Earnings were strong last quarter. OneSpaWorld Holdings Limited beat our consensus estimate by 13.04%, and for the current fiscal year, OSW is expected to post earnings of $0.97 per share on revenue of $890.68 million.Shares of OneSpaWorld Holdings Limited have gained 10.5% over the past month, and currently trade at a forward P/E of 22.72X and a P/CF of 25.59X.The Leisure and Recreation Services industry is in the top 12% of all the industries we have in our universe, so it looks like there are some nice tailwinds for CCL and OSW, even beyond their own solid fundamental situation.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.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 OneSpaWorld Holdings Limited (OSW): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks