Carnival Corporation (CCL): Today's Featured Services Laggard

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 Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Carnival Corporation fell $1.56 (-4%) to $37.46 on heavy volume. Throughout the day, 7.6 million shares of Carnival Corporation exchanged hands as compared to its average daily volume of 3.8 million shares. The stock ranged in price between $36.97-$38.75 after having opened the day at $38.59 as compared to the previous trading day's close of $39.02. Other companies within the Services sector that declined today were: Learning Tree International ( LTRE), down 19.6%, China Metro-Rural Holdings ( CNR), down 15.3%, FreeSeas ( FREE), down 13.6%, and Nevada Gold & Casinos ( UWN), down 10.8%.
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Carnival Corporation operates as a cruise and vacation company worldwide. Carnival Corporation has a market cap of $22.93 billion and is part of the leisure industry. The company has a P/E ratio of 23.2, above the S&P 500 P/E ratio of 17.7. Shares are up 5.3% year to date as of the close of trading on Tuesday. 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 reasonable valuation levels, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, RPX ( RPXC), up 22.1%, Innovaro ( INV), up 20.2%, ALCO Stores ( ALCS), up 17.6%, and iParty Corporation ( IPT), up 12.6%, were all gainers within the services sector with Kohl's ( KSS) being today's featured services sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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