Carnival Corporation (CCL): Today's Featured Services 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 Services sector higher today making it today's featured services winner. The sector as a whole closed the day up 0.5%. By the end of trading, Carnival Corporation rose 67 cents (2%) to $34.30 on average volume. Throughout the day, 5.2 million shares of Carnival Corporation exchanged hands as compared to its average daily volume of 5.2 million shares. The stock ranged in a price between $33.85-$34.40 after having opened the day at $33.90 as compared to the previous trading day's close of $33.63. Other companies within the Services sector that increased today were: Birner Dental Management Services ( BDMS), up 27.9%, Mecox Lane ( MCOX), up 23.1%, Globus Maritime ( GLBS), up 15.8%, and Bluelinx Holdings ( BXC), up 12.2%.
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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 billion and is part of the leisure industry. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are down 8.5% year to date as of the close of trading on Wednesday. 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 revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins.

On the negative front, Hudson Technology ( HDSN), down 18.4%, Beasley Broadcast Group ( BBGI), down 11.1%, CIBT Education Group ( MBA), down 11.1%, and Synnex Corporation ( SNX), down 9.5%, were all laggards within the services sector with Kohl's ( KSS) being today's services sector laggard.

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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