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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Carnival Corporation

(

CCL

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Carnival Corporation as such a stock due to the following factors:

  • CCL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $171.2 million.
  • CCL traded 133,669 shares today in the pre-market hours as of 9:16 AM.
  • CCL is up 2.6% today from yesterday's close.

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More details on CCL:

Carnival Corporation operates as a cruise and vacation company worldwide. The company operates in two segments, North America; and Europe, Australia, and Asia. Currently there are 3 analysts that rate Carnival Corporation a buy, 2 analysts rate it a sell, and 11 rate it a hold.

TheStreet Recommends

The average volume for Carnival Corporation has been 4.9 million shares per day over the past 30 days. Carnival has a market cap of $21.6 billion and is part of the services sector and leisure industry. The stock has a beta of 0.86 and a short float of 7.5% with 5.94 days to cover.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Carnival Corporation as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from the ratings report include:

  • CCL's revenue growth has slightly outpaced the industry average of 0.6%. Since the same quarter one year prior, revenues slightly increased by 0.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.25 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • 41.98% is the gross profit margin for CARNIVAL CORP/PLC (USA) which we consider to be strong. Regardless of CCL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CCL's net profit margin of 19.76% compares favorably to the industry average.
  • The change in net income from the same quarter one year ago has exceeded that of the Hotels, Restaurants & Leisure industry average, but is less than that of the S&P 500. The net income has significantly decreased by 29.8% when compared to the same quarter one year ago, falling from $1,330.00 million to $934.00 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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