Carnival stock benefits from solid demand trends, marketing strategies, focus on reducing debt levels and cost-saving initiatives.
The Leisure & Recreation Services industry gains from macroeconomic tailwinds, particularly the Federal Reserve's interest rate reduction. Stocks like RCL, CCL, NCLH and CNK are better positioned to gain from the industry trends.
In the most recent trading session, Carnival (CCL) closed at $24.31, indicating a -0.98% shift from the previous trading day.
CCL has outperformed in 3Q24, aiming at even stronger results in guidance through this year and the next three. The stock spiked on earnings call indicating more to come based on management guidance conviction for balance of '24 and '25. CCL's strength in the Millennial generations will power its growth ahead while maintaining its grip on the over 62 base customer.
Carnival (CCL) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
Carnival Corporation emerged in the post-pandemic world with a levered balance sheet and low occupancy rates. As the company changes course, management is focused on fixing its capital structure first and foremost, in order to lower interest payments. Simultaneously to the adjustment in the balance sheet, the company currently enjoys positive momentum as an aging population and a younger generation increase its demand for cruise vacations globally.
Here is how Carnival (CCL) and Cinemark Holdings (CNK) have performed compared to their sector so far this year.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
In 3Q24, CCL generated $7.89 billion and $1.7 billion in revenues and net income respectively, representing a year-on-year growth of 15.20% and 61.55% respectively. Multiple indicators suggest that overall demand in the cruise industry remains strong and will continue to serve as tailwinds for the company. Paying down debt is CCL's utmost priority; it is an achievable but challenging task. CCL must manage its liquidity tactically. Fortunately, customer deposits stand at a high of $6.4 billion.
Carnival stock has nearly doubled over the past year. The party might not be over.
This cruise industry leader can continue to reward shareholders.