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The Zacks Analyst Blog Highlights NVIDIA, Tesla, Apple, Royal Caribbean Cruises and Carnival

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For Immediate Release

Chicago, IL – June 30, 2023 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA Corp. (NVDA - Free Report) , Tesla Inc. (TSLA - Free Report) , Apple Inc. (AAPL - Free Report) , Royal Caribbean Cruises Ltd. (RCL - Free Report) and Carnival Corp. & plc (CCL - Free Report) .

Here are highlights from Thursday’s Analyst Blog:

2 Cruise Stocks Boosting the S&P 500 Rally in 1H 2023

Astute investors and market pundits were expecting the stock market returns to take a beating this year primarily due to the Federal Reserve’s aggressive monetary tightening measures to tackle stubbornly high inflation.

The consensus was that persistent interest rate hikes would lead to an economic slump, dragging stocks down. An array of regional bank failures had further heightened concerns about economic growth.

However, the economy is still chugging along, with the broader S&P 500 index well-poised to register its best half year in nearly two decades. This is because strength in the labor market overshadowed all kinds of headwinds, including the debt ceiling crisis.

But it’s also true that big techs dominated the S&P 500’s rally for most of the year, thanks to the unprecedented progress in the field of artificial intelligence (AI).

Driven by the AI frenzy, some of the notable S&P 500-listed tech titans such as NVIDIA Corp., Tesla Inc. and Apple Inc. saw their shares soar 181.4%, 108%, 53.6% and 45.7%, individually, so far this year, while the S&P 500 Index surged 9.6% in the same period.

Having said that, interestingly, two of the best-performing stocks listed on the S&P 500 have nothing to do with the AI boom, nor are they part of any revolutionary technologies such as self-driving cars. They are well-known for ferrying people across the globe on cruise ships.

These cruise line stocks are Royal Caribbean Cruises Ltd. and Carnival Corp. & plc, and their shares have surged 108.6% and 114.5%, respectively, in the year-to-date period.

These cruise liners were among the hardest hit during the outbreak of the coronavirus that led to several travel restrictions. Their businesses became soft in the last two years, but with pent-up demand and travel curbs being lifted this year, Royal Caribbean and Carnival racked up solid gains. What’s more, their shares still trade below pre-pandemic levels, indicating more upside soon.

Thanks to an uptick in both onboard sales and tickets, Royal Caribbean’s revenues almost tripled in the first quarter of this year compared to the same period last year. The company swung from an operating loss to a profit in the first quarter and at present has high expectations for its full-year growth.

Royal Caribbean’s expected earnings growth rate for the current year is a whopping 162.9%. The company’s estimated earnings growth rate for next year is also a superb 44.9%.

Notably, the company’s projected revenue growth rates for the current and next years are 48.7% and 13.3%, respectively.

The Zacks Consensus Estimate for RCL’s current-year earnings has moved up 44.8% over the past 60 days. Royal Caribbean has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Similarly, Carnival saw its revenues jump during the first half of this year as passenger booking for upcoming trips skyrocketed. Carnival notched an operating profit during the first six months of this year, in contrast to the operating loss it booked over the same period in 2022.

Carnival’s expected earnings growth rate for the current year is a remarkable 94%. The company’s estimated earnings growth rate for the next year is also a staggering 407.1%.

At the same time, the company’s projected revenue growth rates for the current and next years are 72.7% and 10.1%, respectively.

The Zacks Consensus Estimate for CCL’s current-year earnings has moved up 3.5% over the past 60 days. Royal Caribbean has a Zacks Rank #3 (Hold).

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

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