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Carnival Corporation & plc (CCL), headquartered in Miami, Florida, is a global leader in the cruise industry. With a market cap of $21.29 billion, Carnival operates a world-renowned cruise brand portfolio, offering travelers memorable vacation experiences worldwide.
Companies valued at $10 billion or more are generally described as "large-cap stocks," and Carnival Corporation is a prime example of this. By offering diverse and unforgettable cruise experiences, Carnival connects millions of travelers to global destinations, establishing itself as a leader in the travel and leisure industry.
CCL shares are trading 3.9% below their 52-week high of $19.74, which they hit on Dec. 12, 2023. The stock has gained 18.1% over the past three months, outperforming the broader Nasdaq Composite ($NASX), which has gained 1.6% over the same time frame.
In the longer term, CCL is up 2.3% on a YTD basis, and the shares have gained by 35% over the past 52 weeks. In comparison, the Nasdaq has gained 19.7% in 2024 and rallied 36.1% over the past year.
CCL has been trading above its 50-day- and 200-day moving averages since early September to confirm its bullish trend.
On Sep. 18, Carnival shares rose by more than 2%, alongside gains in the broader cruise line industry. In June, shares of Carnival Corporation surged over 24% following strong Q2 results and an optimistic outlook for 2024 and 2025. CCL reported adjusted EPS of $0.11 compared to the consensus loss per share estimates of $0.01.
Revenue grew 17.7% year-over-year to $5.78 billion, surpassing forecasts. The company raised its 2024 net yield and adjusted EBITDA guidance, with a $200 million increase to $5.83 billion. Additionally, CCL improved its 2024 net income guidance by $275 million, while cumulative bookings for 2025 are projected to exceed 2024 in both price and occupancy.
Highlighting the contrast in performance, CCL's competitor, Royal Caribbean Cruises Ltd. (RCL), has outperformed both the stock and NASX. RCL has gained 35.8% on a YTD basis.
Analysts are bullish about CCL's prospects despite its strong price performance. The stock has a consensus rating of "Strong Buy" from 21 analysts in coverage. The mean price target is $22.45, suggesting a premium of 18.3% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
