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Carnival (CCL) shares soared 9.2% in the last trading session to close at $17.89. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 29.3% loss over the past four weeks.
Resumption of operations, robust booking volumes and new cruise additions have been boosting investor confidence. During the third quarter, booking volumes for all future cruises were higher than booking volumes during the first quarter of 2021.
This cruise operator is expected to post quarterly loss of $1.46 per share in its upcoming report, which represents a year-over-year change of +27.7%. Revenues are expected to be $1.48 billion, up 4261.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Carnival, the consensus EPS estimate for the quarter has been revised 46.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CCL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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