Carnival Corporation is a leading cruise company, currently undervalued and trading at a forward P/E of 12.90, below the sector median. CCL posted its 11th consecutive double-beat quarter, with strong revenue and EPS growth, despite a brief negative market reaction post-earnings. A $36 price target suggests a 28% upside over the next 12 months, supported by high margins, steady growth, and robu...
CCL has reported the durable consumer demand for cruising, as observed in the raised FY2025 guidance and the management achieving the 2026 SEA Change targets 18 months ahead of schedule. This is on top of the excellent 2026 booking trends at higher prices and the growing customer deposits, significantly aided by the increased close-in demand. These reasons are also why CCL has felt confident to...
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Cruise line stocks have surged since the pandemic, significantly outperforming the market. Carnival has reported record results and bookings for the last several quarters.
Verizon offers a beefy 7.1% yield, and next September it should boost its payouts for the twentieth year in a row. Carnival has been besting analyst quarterly profit targets for three years, and Wall Street pros continue to underestimate its earnings potential.
Management has efficiently handled bringing the company back to speed, and it's now generating record demand. It's been paying down its debt at a fast clip.
This company struggled mightily during the depths of the pandemic, but it's now generating revenue and earnings growth. Lower interest rates in the near term, coupled with favorable long-term industry tailwinds, support durable demand.
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