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

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.

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 0.8%. By the end of trading, Carnival Corporation fell $0.43 (-1.1%) to $40.65 on light volume. Throughout the day, 2,897,791 shares of Carnival Corporation exchanged hands as compared to its average daily volume of 4,289,800 shares. The stock ranged in price between $40.35-$40.91 after having opened the day at $40.89 as compared to the previous trading day's close of $41.08. Other companies within the Leisure industry that declined today were: 500.com Ltd ADR ( WBAI), down 10.4%, Qunar Cayman Islands ( QUNR), down 8.8%, Bowl America Incorporated ( BWL.A), down 6.7% and Arcos Dorados Holdings ( ARCO), down 6.1%.

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 $24.2 billion and is part of the services sector. The company has a P/E ratio of 25.8, above the S&P 500 P/E ratio of 17.7. Shares are up 1.6% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Carnival Corporation a buy, 1 analyst rates it a sell, and 11 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 revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, PokerTek ( PTEK), up 25.7%, Century Casinos ( CNTY), up 2.7%, Red Lion Hotels Corporation ( RLH), up 2.5% and Frisch's Restaurants ( FRS), up 2.1% , were all gainers within the leisure industry with Brinker International ( EAT) being today's featured leisure industry leader.

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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