Carnival (CCL) Strong In Pre-Market Trading

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 $159.4 million.
  • CCL traded 75,297 shares today in the pre-market hours as of 9:16 AM.
  • CCL is up 3.5% today from Friday'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 2.5%. CCL has a PE ratio of 28.4. Currently there are 4 analysts that rate Carnival a buy, 1 analyst rates it a sell, and 8 rate it a hold.

The average volume for Carnival has been 3.3 million shares per day over the past 30 days. Carnival has a market cap of $23.8 billion and is part of the services sector and leisure industry. The stock has a beta of 0.85 and a short float of 3.9% with 3.04 days to cover. Shares are up 1.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Carnival as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • CCL's revenue growth has slightly outpaced the industry average of 5.5%. 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 net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 158.5% when compared to the same quarter one year prior, rising from $41.00 million to $106.00 million.
  • Net operating cash flow has slightly increased to $1,196.00 million or 3.37% when compared to the same quarter last year. In addition, CARNIVAL CORP/PLC (USA) has also modestly surpassed the industry average cash flow growth rate of -5.08%.
  • 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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