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.

Trade-Ideas LLC identified Carnival ( CCL) as a pre-market laggard 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 $175.1 million.
  • CCL traded 33,485 shares today in the pre-market hours as of 9:28 AM.
  • CCL is down 3% today from yesterday's close.

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More details on CCL:

Carnival Corporation operates as a cruise company worldwide. It provides vacations to various cruise destinations. The stock currently has a dividend yield of 2.1%. CCL has a PE ratio of 29.4. Currently there are 6 analysts that rate Carnival a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Carnival has been 4.3 million shares per day over the past 30 days. Carnival has a market cap of $27.7 billion and is part of the services sector and leisure industry. The stock has a beta of 0.51 and a short float of 1.5% with 1.72 days to cover. Shares are up 3% year-to-date as of the close of trading on Thursday.

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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, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • CCL's revenue growth has slightly outpaced the industry average of 7.3%. Since the same quarter one year prior, revenues slightly increased by 1.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $637.00 million or 34.10% when compared to the same quarter last year. Despite an increase in cash flow, CARNIVAL CORP/PLC (USA)'s average is still marginally south of the industry average growth rate of 40.33%.
  • The current debt-to-equity ratio, 0.37, 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 0.12 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

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