NEW YORK (TheStreet) -- Carnival (CCL - Get Report) stock is decreasing 7.68% to $45.21 in late-afternoon trading on Tuesday following rival cruise company Royal Caribbean Cruise's (RCL) disappointing fiscal 2016 outlook.
Before the market open, Royal Caribbean warned that 2016 earnings will likely fall short of analysts' expectations.
Royal Caribbean noted that fuel costs have declined, but the strong dollar nonetheless negatively impacted its 2016 guidance by 14 cents per share.
Higher interest rates are projected to further weigh on results by 6 cents per share.
About 13.79 million shares of Carnival have been traded so far today, more than double the company's average trading volume of roughly 6.14 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of A.
Carnival's strengths include its impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels, good cash flow from operations and expanding profit margins.
You can view the full analysis from the report here: CCL
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.CCL data by YCharts