Carnival bets on new ships to boost growth and efficiency, but rising costs test whether gains can turn into lasting profitability.
Carnival's 34% rally in three months reflects strong demand, record yields and balance sheet gains. Yet, rising costs and global risks loom.
Investors looking for stocks in the Leisure and Recreation Services sector might want to consider either Carnival (CCL) or Atour Lifestyle Holdings Limited Sponsored ADR (ATAT). But which of these two stocks offers value investors a better bang for their buck right now?
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.
Carnival (CCL) closed the most recent trading day at $30.25, moving 1.27% from the previous trading session.
CCL plans strategic ship additions and upgrades to elevate guest experience and strengthen its market position.
Rate cut optimism is fueling U.S. markets, with DIS, CCL, HAS, NFLX and RL set for potential gains in consumer discretionary.
CCL has significantly benefited from the consumers' willingness to pay the higher ticket prices/ onboard spending and the expanding cruise demographics beyond typical boomers/ Gen X to Millennials. The same has been observed in its growing customer deposits, significantly aided by the increased capacity from newbuilds and the higher close-in booking trends. It is apparent that the uncertain macroeconomic outlook has yet to spill into the cruise/ travel sector, as similarly reported by market leaders in Q2'25 earning season.
Over the past 12 months, the S&P 500 rallied more than 20%. It is hovering near its all-time high and looks historically expensive at 29 times its trailing earnings -- so this might not be the best time to hunt for bargain stocks.
CCL posts record yields and two-decade high margins, but rivals RCL and NCLH are eyeing its premium pricing edge.
Carnival (CCL) concluded the recent trading session at $29.28, signifying a -1.48% move from its prior day's close.
Here is how Carnival (CCL) and Monarch Casino (MCRI) have performed compared to their sector so far this year.