ROOM FOR A GAIN AS CARNIVAL REPORTS Stock Has Upside if Bookings Hold Up Despite Zika

Posted on 09/26/2016

Carnival Corp. finally had regained steam nicely when Zika forced a course correction. Concern that the mosquito-borne disease could hurt tourism have weighed on the sector in recent months.

Shares of Carnival, the world’s largest cruise-ship company, have underperformed the S&P 500 by some 18 percentage points since early April. If this proves overblown, investors might have an opportunity, beginning Monday, when Carnival is expected to release results for its fiscal third quarter, which runs through August.
Analysts polled by FactSet forecast earnings of $1.88 a share, up 8% from a year earlier. Revenue is expected to have increased 4% to $5.1 billion.