Carnival (CCL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
CCL is Tripadvisor's competitor in the Hotels, Resorts & Cruise Lines sector that possesses:
Carnival's free cash flow momentum accelerates as stronger pricing, longer booking curves and efficiency gains deepen its recovery.
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In the latest trading session, Carnival (CCL) closed at $25.51, marking a -1.92% move from the previous day.
Carnival Corporation remains rated Buy, with a compelling upside after a recent 10% price drop, reflecting softening demand conditions. CCL's forward P/E has dropped in the past two months, owing to an improved outlook and lower price. Its EV/EBITDA is also at the lowest levels in the sector. While deceleration in industry-wide cruise growth along with a weak macroeconomic outlook is concerning, the company's earnings outlook and expectations for 2026 are still encouraging.
The cruise industry maintains a 25-30% cost advantage over land-based vacations, driving high growth and customer stickiness (82% repeat rate). Carnival (CCL) is upgrading to higher-end ships and investing in private island destinations, enhancing ROIC and narrowing the ROTC gap with RCL. Demand visibility remains high, and CCL trades at a valuation discount to RCL, offering a relative value opportunity.
Carnival has bounced back from COVID-era challenges. Shares are more expensive than they look on the surface.
Carnival's ROIC hits its highest level since 2007, signaling stronger returns as efficiency gains, debt cuts and fleet upgrades reshape its recovery path.
CCL, FUBO, RL and ROKU stand out as consumer plays as firmer economic data lift sentiment and revive hopes for a December rate cut.
Carnival's 19% slide contrasts with record 2026-2027 bookings, broad pricing gains and expanding destination assets supporting its outlook.