It makes sense and dollars to buy Carnival Corporation & plc (CUK) stock

Carnival Corporation & plc (NYSE: CUK) stock fell -0.10% on Tuesday to $9.66 against a previous-day closing price of $9.67. With 1.49 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.16 million shares. During the session, the Travel Services company that operates in wider Consumer Cyclical sector, reached to the highest price of $9.88 whereas the lowest price it dropped to was $9.55. The 52-week range on CUK shows that it touched its highest point at $22.12 and its lowest point at $5.43 during that stretch. Beta for the stock currently stands at 2.21.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CUK was down-trending over the past week, with a drop of -0.92%, but this was up by 28.29% over a month. Three-month performance surged to 32.33% while six-month performance rose 18.67%. The stock lost -47.56% in the past year, while it has gained 34.35% so far this year. A look at the trailing 12-month EPS for CUK yields -5.19 with Next year EPS estimates of 1.46. EPS is expected to grow by 13.40% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -33.70%.

Float and Shares Shorts:

At present, 1.19 billion CUK shares are outstanding with a float of 143.25 million shares on hand for trading. On Oct 13, 2022, short shares totaled 7.89 million, which was 0.61% higher than short shares on Sep 14, 2022. In addition to Mr. Micky Meir Arison as the firm’s Exec. Chairman, Mr. David Bernstein serves as its CFO & Chief Accounting Officer.

Institutional Ownership:

Through their ownership of 16.57% of CUK’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 15.90% of CUK, in contrast to 0.11% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in CUK with 6.04% of the stake, Aristeia Capital LLC holds 11,247,602 shares worth 11,247,602. A second-largest stockholder of CUK, Janus Henderson Investors UK Ltd., holds 2,543,498 shares, controlling over 1.37% of the firm’s shares. JPMorgan Securities LLC is the third largest shareholder in CUK, holding 2,461,601 shares or 1.32% stake. With a 0.07% stake in CUK, the DFA International Core Equity Por is the largest stakeholder. A total of 122,081 shares are owned by the mutual fund manager. The MSF Global Opportunities – WorldS, which owns about 0.01% of CUK stock, is the second-largest Mutual Fund holder. It holds 24,000 shares valued at 0.17 million. Janus Henderson Strategic Invt. F holds 0.01% of the stake in CUK, owning 15,216 shares worth 0.11 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CUK since 21 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 4 suggest SELL ratings. Of the remaining analysts, 8 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CUK analysts setting a high price target of $18.00 and a low target of $6.00, the average target price over the next 12 months is $10.26. Based on these targets, CUK could surge 86.34% to reach the target high and fall by -37.89% to reach the target low. Reaching the average price target will result in a growth of 6.21% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CUK will report FY 2023 earnings on 12/20/2023. Analysts have provided yearly estimates in a range of $0.85 being high and -$0.27 being low. For CUK, this leads to a yearly average estimate of $0.03. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Carnival Corporation & plc surprised analysts by $0.03 when it reported -$0.85 EPS against a consensus estimate of -$0.88. The surprise factor in the prior quarter was -$0.53. Based on analyst estimates, the high estimate for the next quarter is -$0.23 and the low estimate is -$0.64. The average estimate for the next quarter is thus -$0.58.

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