Investment Opportunity Analysis for Carnival Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Yahoo Finance
- Demand Recovery: In Q2 2026, Carnival's sales increased by 5.3% compared to the same period in 2025, with customer deposits reaching $9 billion, indicating a strong post-pandemic market recovery that is expected to attract more young travelers and further drive company growth.
- Improving Financials: Carnival's long-term debt has decreased from $35.1 billion in Q1 2023 to $24.9 billion, as management prioritizes balance sheet improvement, and S&P Global recently upgraded its credit rating to investment grade, reflecting market confidence in its financial health.
- Dividends and Buybacks: Carnival resumed dividend payments in February 2023, with a current quarterly payout of $0.15, yielding 2.1%, and stock repurchases totaling $381 million in the first half of the fiscal year, demonstrating the company's commitment to returning value to shareholders.
- Attractive Valuation: Carnival's forward price-to-earnings ratio stands at 13.1, significantly below market averages, with analysts projecting an 11.2% compound annual growth rate in earnings per share from 2025 to 2028, making it a compelling investment opportunity despite debt burdens and cyclical market risks.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy CCL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on CCL
Wall Street analysts forecast CCL stock price to rise
18 Analyst Rating
14 Buy
4 Hold
0 Sell
Strong Buy
Current: 27.510
Low
33.00
Averages
37.41
High
45.00
Current: 27.510
Low
33.00
Averages
37.41
High
45.00
About CCL
Carnival Corporation is a global cruise and leisure travel company. The Company has a portfolio of cruise lines, including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn. The Company's segment includes NAA cruise operations, Europe cruise operations (Europe), Cruise Support and Tour and Other. Its Cruise Support segment includes its portfolio of port destinations and exclusive islands as well as other services, all of which are operated for the benefit of its cruise brands. In addition to its cruise operations, it owns Holland America Princess Alaska Tours, a tour company in Alaska and the Canadian Yukon, which complements its Alaska cruise operations. Its Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and other operations. Its tour company owns and operates hotels, lodges, glass-domed railcars and motorcoaches.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Holland America Line Unveils 2027-2028 Caribbean Season Highlights
- Diverse Itineraries: The 2027-2028 Caribbean season features 29 itineraries across 47 departures, visiting 35 ports, offering more nine-day-or-longer voyages than any other cruise line, aimed at enhancing customer exploration and satisfaction.
- Unique Experiences: The new season includes shore excursions curated with The HISTORY Channel and locally focused 'Meet the Makers' tours, designed to connect guests more deeply with Caribbean culture and flavors, while onboard amenities like the adults-only aft pool enhance the overall guest experience.
- Oosterdam Upgrade: The reimagined Oosterdam will debut in December 2027, introducing Solo Verandah staterooms with private balconies and panoramic ocean view suites, aimed at meeting modern travelers' needs while enhancing onboard facilities and service diversity.
- Holiday Voyages: The season offers eight holiday cruises, including special itineraries for Thanksgiving and Christmas, featuring festive decorations and special dining options onboard, aimed at providing guests with a stress-free holiday celebration experience, further enhancing brand appeal.
See More
BMO Names Royal Caribbean as Top Cruise Stock with $370 Target
- Royal Caribbean Price Target: BMO sets a $370 price target for Royal Caribbean, implying a 31% upside, reflecting the company's strong ability to retain existing guests while attracting new ones, and is expected to benefit from improving industry conditions.
- Norwegian Cruise Challenges: Despite Norwegian Cruise Line's premium positioning, BMO assigns a $21 price target due to financial and operational performance lagging behind key rivals, indicating multiple challenges and an unclear investment outlook for the company.
- Carnival Lacks Catalysts: BMO maintains a balanced outlook on Carnival with a $30 price target, noting a lack of near-term catalysts post-financial restructuring, with a focus on boosting cash flow and improving fleet efficiency.
- Retail Sentiment Shift: On Stocktwits, retail sentiment around Royal Caribbean remains 'bullish', while Norwegian Cruise sentiment shifted from 'bullish' to 'neutral', and Carnival remains 'bearish', reflecting varying market perceptions of the cruise lines.
See More
US Stocks Close Lower as Chipmakers Weigh on Market
- Market Decline: On Tuesday, the S&P 500 index fell by 0.45%, the Dow Jones Industrial Average dropped by 0.25%, and the Nasdaq 100 index decreased by 1.77%, indicating a broader market decline under pressure from a selloff in chipmakers, reflecting investor concerns over high valuations.
- Samsung's Earnings Disappointment: Despite Samsung Electronics reporting a 19-fold profit surge, its stock plummeted over 8% in South Korea, suggesting market skepticism regarding the future profitability of the semiconductor sector, which could impact investor confidence in related companies.
- Geopolitical Risks Heightened: Crude oil prices surged to a 1.5-week high due to attacks on shipping in the Strait of Hormuz, raising inflation expectations and pushing bond yields higher, with the 10-year T-note yield reaching a 3.5-week high of 4.54%, adding uncertainty to the market.
- Strength in Software Stocks: Despite the overall market pressure, strong performance in software stocks indicates a rotation of funds into other sectors, with companies like Workday seeing stock price increases of over 4%, providing some support for the market.
See More
Rising Oil Prices Weigh on Cruise Stocks Performance
- Cruise Stocks Decline: Major cruise operators like Carnival Corporation (CCL) saw shares drop approximately 5.8%, Royal Caribbean (RCL) fell around 10.5%, and Norwegian Cruise Line Holdings (NCLH) declined by 12.2%, reflecting investor concerns over rising operating costs due to increasing oil prices.
- Oil Price Surge: Oil prices rose about 3% on Tuesday and continued to climb following the U.S. decision to revoke a general license for Iranian crude sales, raising fears of potential supply disruptions and further increasing crude prices.
- Cost Pressure on Operations: Higher fuel prices are a significant cost driver for cruise operators, who heavily rely on energy for their operations, and this increase could negatively impact overall travel demand as rising transportation costs limit consumer spending.
- Cautious Market Sentiment: The sustained decline in cruise and hotel stocks indicates growing investor caution as volatility in the energy market exacerbates cost concerns, leading to diminished confidence in travel-related companies.
See More
Market Capitalization Comparison: CBRE vs. Carnival
- Market Cap Comparison: CBRE Group Inc has a market capitalization of $41.16 billion compared to Carnival Corporation's $34.08 billion, indicating CBRE's relative strength in the market, which may attract more investments from large funds.
- Investor Misconceptions: Many novice investors often overlook the importance of market capitalization, mistakenly comparing stock prices without considering share counts, leading to misunderstandings about company valuations, highlighting the significance of market cap in investment decisions.
- Market Positioning Impact: Market capitalization not only affects a company's ranking among peers but also determines which mutual funds and ETFs are willing to hold the stock, with CBRE's size making it more likely to be included in large fund portfolios.
- Stock Performance: As of Tuesday's closing bell, CBRE's stock rose approximately 2.4%, while Carnival's stock fell about 3%, reflecting positive market sentiment towards CBRE and a cautious outlook on Carnival.
See More
US Stocks Decline as Chipmakers Struggle
- Market Decline: The S&P 500 index fell by 0.67%, the Dow Jones Industrial Average by 0.38%, and the Nasdaq 100 by 2.14%, indicating a bearish market sentiment, particularly driven by a selloff in chipmakers.
- Samsung's Earnings Disappointment: Despite a staggering 19-fold profit increase, Samsung Electronics' stock dropped over 8% in South Korea, reflecting investor concerns over high valuations in the semiconductor sector, which could undermine overall market confidence.
- Rising Oil Prices: Following attacks in the Strait of Hormuz, WTI crude oil prices surged over 2%, raising inflation expectations and pushing bond yields higher, with the 10-year T-note yield reaching a 3.5-week high of 4.52%.
- Widening Trade Deficit: The US trade deficit for May expanded to $77.6 billion, the largest in 14 months, which may negatively impact Q2 GDP, adding to market uncertainties.
See More
Holland America Line Unveils 2027-2028 Caribbean Season Highlights
- Diverse Itineraries: The 2027-2028 Caribbean season features 29 itineraries across 47 departures, visiting 35 ports, offering more nine-day-or-longer voyages than any other cruise line, aimed at enhancing customer exploration and satisfaction.
- Unique Experiences: The new season includes shore excursions curated with The HISTORY Channel and locally focused 'Meet the Makers' tours, designed to connect guests more deeply with Caribbean culture and flavors, while onboard amenities like the adults-only aft pool enhance the overall guest experience.
- Oosterdam Upgrade: The reimagined Oosterdam will debut in December 2027, introducing Solo Verandah staterooms with private balconies and panoramic ocean view suites, aimed at meeting modern travelers' needs while enhancing onboard facilities and service diversity.
- Holiday Voyages: The season offers eight holiday cruises, including special itineraries for Thanksgiving and Christmas, featuring festive decorations and special dining options onboard, aimed at providing guests with a stress-free holiday celebration experience, further enhancing brand appeal.
See More
BMO Names Royal Caribbean as Top Cruise Stock with $370 Target
- Royal Caribbean Price Target: BMO sets a $370 price target for Royal Caribbean, implying a 31% upside, reflecting the company's strong ability to retain existing guests while attracting new ones, and is expected to benefit from improving industry conditions.
- Norwegian Cruise Challenges: Despite Norwegian Cruise Line's premium positioning, BMO assigns a $21 price target due to financial and operational performance lagging behind key rivals, indicating multiple challenges and an unclear investment outlook for the company.
- Carnival Lacks Catalysts: BMO maintains a balanced outlook on Carnival with a $30 price target, noting a lack of near-term catalysts post-financial restructuring, with a focus on boosting cash flow and improving fleet efficiency.
- Retail Sentiment Shift: On Stocktwits, retail sentiment around Royal Caribbean remains 'bullish', while Norwegian Cruise sentiment shifted from 'bullish' to 'neutral', and Carnival remains 'bearish', reflecting varying market perceptions of the cruise lines.
See More
US Stocks Close Lower as Chipmakers Weigh on Market
- Market Decline: On Tuesday, the S&P 500 index fell by 0.45%, the Dow Jones Industrial Average dropped by 0.25%, and the Nasdaq 100 index decreased by 1.77%, indicating a broader market decline under pressure from a selloff in chipmakers, reflecting investor concerns over high valuations.
- Samsung's Earnings Disappointment: Despite Samsung Electronics reporting a 19-fold profit surge, its stock plummeted over 8% in South Korea, suggesting market skepticism regarding the future profitability of the semiconductor sector, which could impact investor confidence in related companies.
- Geopolitical Risks Heightened: Crude oil prices surged to a 1.5-week high due to attacks on shipping in the Strait of Hormuz, raising inflation expectations and pushing bond yields higher, with the 10-year T-note yield reaching a 3.5-week high of 4.54%, adding uncertainty to the market.
- Strength in Software Stocks: Despite the overall market pressure, strong performance in software stocks indicates a rotation of funds into other sectors, with companies like Workday seeing stock price increases of over 4%, providing some support for the market.
See More
Rising Oil Prices Weigh on Cruise Stocks Performance
- Cruise Stocks Decline: Major cruise operators like Carnival Corporation (CCL) saw shares drop approximately 5.8%, Royal Caribbean (RCL) fell around 10.5%, and Norwegian Cruise Line Holdings (NCLH) declined by 12.2%, reflecting investor concerns over rising operating costs due to increasing oil prices.
- Oil Price Surge: Oil prices rose about 3% on Tuesday and continued to climb following the U.S. decision to revoke a general license for Iranian crude sales, raising fears of potential supply disruptions and further increasing crude prices.
- Cost Pressure on Operations: Higher fuel prices are a significant cost driver for cruise operators, who heavily rely on energy for their operations, and this increase could negatively impact overall travel demand as rising transportation costs limit consumer spending.
- Cautious Market Sentiment: The sustained decline in cruise and hotel stocks indicates growing investor caution as volatility in the energy market exacerbates cost concerns, leading to diminished confidence in travel-related companies.
See More
Market Capitalization Comparison: CBRE vs. Carnival
- Market Cap Comparison: CBRE Group Inc has a market capitalization of $41.16 billion compared to Carnival Corporation's $34.08 billion, indicating CBRE's relative strength in the market, which may attract more investments from large funds.
- Investor Misconceptions: Many novice investors often overlook the importance of market capitalization, mistakenly comparing stock prices without considering share counts, leading to misunderstandings about company valuations, highlighting the significance of market cap in investment decisions.
- Market Positioning Impact: Market capitalization not only affects a company's ranking among peers but also determines which mutual funds and ETFs are willing to hold the stock, with CBRE's size making it more likely to be included in large fund portfolios.
- Stock Performance: As of Tuesday's closing bell, CBRE's stock rose approximately 2.4%, while Carnival's stock fell about 3%, reflecting positive market sentiment towards CBRE and a cautious outlook on Carnival.
See More
US Stocks Decline as Chipmakers Struggle
- Market Decline: The S&P 500 index fell by 0.67%, the Dow Jones Industrial Average by 0.38%, and the Nasdaq 100 by 2.14%, indicating a bearish market sentiment, particularly driven by a selloff in chipmakers.
- Samsung's Earnings Disappointment: Despite a staggering 19-fold profit increase, Samsung Electronics' stock dropped over 8% in South Korea, reflecting investor concerns over high valuations in the semiconductor sector, which could undermine overall market confidence.
- Rising Oil Prices: Following attacks in the Strait of Hormuz, WTI crude oil prices surged over 2%, raising inflation expectations and pushing bond yields higher, with the 10-year T-note yield reaching a 3.5-week high of 4.52%.
- Widening Trade Deficit: The US trade deficit for May expanded to $77.6 billion, the largest in 14 months, which may negatively impact Q2 GDP, adding to market uncertainties.
See More
