Carnival is delivering record revenue under robust demand, and margins above pre-pandemic levels, yet trades discounted to peers and history. The company is aggressively reducing debt, refinancing at lower rates, and hitting profitability targets ahead of schedule, strengthening its balance sheet. Despite market skepticism, Carnival's valuation is compelling, offering asymmetric upside for patient value investors as recovery becomes structural.
Carnival's stock has rebounded in recent months, supported by a momentum in favour of consumer discretionary stocks and its own robust financials. The company's Q1 2025 results surprised on the upside resulting in an upgrade in outlook for the year despite uncertainties persisting for the macroeconomy and the cruise sector. The stock's attractive market multiples also work in its favour, though in a year driven by news flow-related market fluctuations, it's best to have a medium-term investing horizon.
Carnival (CCL) closed at $23.16 in the latest trading session, marking a +0.7% move from the prior day.
CCL rides strong bookings, yield growth and debt cuts to lead cruise stocks, while NCLH lags with lower earnings momentum and rising leverage.
Carnival (CCL) closed at $22.41 in the latest trading session, marking a +1.66% move from the prior day.
While technological innovation often dominates market attention, a growing number of investors are seeking growth opportunities in less crowded sectors. The global leisure travel industry, currently in a strong recovery, offers such an alternative, with the cruise segment demonstrating significant strength.
The Leisure & Recreation Services industry gains from the demand for concerts and strong bookings for cruise operators. Stocks like CCL, PRSU and MCS are better-positioned to gain from the industry trends.
Carnival's strong booking trends, disciplined pricing, onboard spend enhancement, and strategic deployment of ships to high-demand markets propel it for growth.
The latest trading day saw Carnival (CCL) settling at $22.99, representing a +1.1% change from its previous close.
The global travel sector is demonstrating renewed vigor, with consumer demand for leisure experiences showing a clear upward trend well into late 2025 and early 2026. Within this revival, the cruise industry is notably buoyant, with passenger volumes widely anticipated to surpass pre-pandemic benchmarks.
Investors interested in stocks from the Leisure and Recreation Services sector have probably already heard of Carnival (CCL) and Trip.com (TCOM). But which of these two stocks is more attractive to value investors?
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.