Carnival (CCL) Leading In Pre-Market Activity

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.

Trade-Ideas LLC identified Carnival ( CCL) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Carnival as such a stock due to the following factors:

  • CCL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $151.3 million.
  • CCL traded 51,160 shares today in the pre-market hours as of 8:17 AM.
  • CCL is up 2.3% today from yesterday's close.

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More details on CCL:

Carnival Corporation operates as a cruise company worldwide. It operates in two segments, North America; and Europe, Australia, & Asia. The stock currently has a dividend yield of 2.8%. CCL has a PE ratio of 25.8. Currently there are 4 analysts that rate Carnival a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Carnival has been 3.5 million shares per day over the past 30 days. Carnival has a market cap of $21.5 billion and is part of the services sector and leisure industry. The stock has a beta of 0.75 and a short float of 3.9% with 3.10 days to cover. Shares are down 9.6% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Carnival as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.9%. Since the same quarter one year prior, revenues slightly increased by 4.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.13 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The gross profit margin for CARNIVAL CORP/PLC (USA) is currently lower than what is desirable, coming in at 29.42%. Regardless of CCL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, CCL's net profit margin of 2.91% is significantly lower than the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, CARNIVAL CORP/PLC (USA)'s return on equity is below that of both the industry average and the S&P 500.

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