Carnival Corporation (CCL): Today's Featured Leisure 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 Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Carnival Corporation fell 71 cents (-2.1%) to $33.21 on heavy volume. Throughout the day, 8.8 million shares of Carnival Corporation exchanged hands as compared to its average daily volume of five million shares. The stock ranged in price between $33.10-$33.83 after having opened the day at $33.75 as compared to the previous trading day's close of $33.92. Other companies within the Leisure industry that declined today were: Century Casinos ( CNTY), down 3.5%, Orbitz Worldwide ( OWW), down 3.1%, Empire Resorts ( NYNY), down 3%, and Expedia ( EXPE), down 2.8%.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Carnival Corporation operates as a cruise and vacation company worldwide. The company operates in two segments, North America; and Europe, Australia, and Asia. Carnival Corporation has a market cap of $20.7 billion and is part of the services sector. The company has a P/E ratio of 20.2, above the S&P 500 P/E ratio of 17.7. Shares are down 7.8% year to date as of the close of trading on Monday. Currently there are six analysts that rate Carnival Corporation a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Carnival Corporation as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

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).

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.

null

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers