Carnival Corporation (CCL): Today's Featured Leisure Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Carnival Corporation ( CCL) pushed the Leisure industry higher today making it today's featured leisure winner. The industry as a whole closed the day up 1.2%. By the end of trading, Carnival Corporation rose 52 cents (1.4%) to $37.80 on average volume. Throughout the day, 2.7 million shares of Carnival Corporation exchanged hands as compared to its average daily volume of 3.5 million shares. The stock ranged in a price between $37.67-$38 after having opened the day at $37.77 as compared to the previous trading day's close of $37.28. Other companies within the Leisure industry that increased today were: Premier Exhibitions ( PRXI), up 18.1%, Del Frisco's Restaurant Group ( DFRG), up 9.4%, Asia Entertainment & Resources ( AERL), up 8.7%, and Country Style Cooking Restaurant Chain ( CCSC), up 8.4%.
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Carnival Corporation operates as a cruise and vacation company worldwide. Carnival Corporation has a market cap of $21.85 billion and is part of the services sector. The company has a P/E ratio of 20.1, below the average leisure industry P/E ratio of 25.4 and above the S&P 500 P/E ratio of 17.7. Shares are up 14.2% year to date as of the close of trading on Monday. Currently there are seven analysts that rate Carnival Corporation a buy, no analysts rate it a sell, and eight rate it a hold.

TheStreet Ratings rates Carnival Corporation as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the negative front, Einstein Noah Restaurant Group ( BAGL), down 9.6%, Cosi ( COSI), down 2.8%, PokerTek ( PTEK), down 2.7%, and MakeMyTrip ( MMYT), down 1.9%, were all laggards within the leisure industry with Chipotle Mexican Grill ( CMG) being today's leisure industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

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