Carnival Corp (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 ( CCL) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day up 0.5%. By the end of trading, Carnival fell $0.65 (-1.6%) to $38.66 on average volume. Throughout the day, 3,811,295 shares of Carnival exchanged hands as compared to its average daily volume of 3,508,600 shares. The stock ranged in price between $38.59-$39.38 after having opened the day at $39.35 as compared to the previous trading day's close of $39.31. Other companies within the Leisure industry that declined today were: Town Sports International Holdings ( CLUB), down 6.6%, Einstein Noah Restaurant Group ( BAGL), down 4.8%, Diversified Restaurant Holdings ( BAGR), down 4.4% and Boyd Gaming Corporation ( BYD), down 3.7%.

Carnival Corporation operates as a cruise company worldwide. It operates in two segments, North America; and Europe, Australia, & Asia. Carnival has a market cap of $23.4 billion and is part of the services sector. The company has a P/E ratio of 28.5, above the S&P 500 P/E ratio of 17.7. Shares are down 1.6% year to date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Carnival a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Carnival as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations 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.

On the positive front, SFX Entertainment ( SFXE), up 7.3%, Ignite Restaurant Group ( IRG), up 6.9%, Good Times Restaurants ( GTIM), up 6.8% and DineEquity ( DIN), up 6.7% , were all gainers within the leisure industry with Wynn Resorts ( WYNN) 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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