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CCL vs. RCL: Which Cruise Line Stock is the Smarter Buy Right Now?
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Key Takeaways
Carnival beat 2026 EBITDA and sustainability targets 18 months early, hitting record margin levels.
Carnival is boosting appeal with new destinations, a revamped fleet, and a 2026 loyalty program rollout.
RCL shows strong yield growth but faces rising costs associated with ports, dry docks, and new ships.
As consumer appetite for experiential travel continues to rebound, cruise operators like Carnival Corporation & plc (CCL - Free Report) and Royal Caribbean Cruises Ltd. (RCL - Free Report) are vying for investor attention with strong brand portfolios and improving fundamentals. Both companies are capitalizing on elevated demand and pricing power, setting them up for growth.
However, differences in strategy, innovation, and operational discipline raise the question: which cruise stock stands out more favorably in the current climate?
Let’s see how these two cruise giants stack up.
The Case for CCL Stock
Carnival is leveraging its global scale and multi-brand strategy to deliver robust yield growth and operational momentum. Carnival recently exceeded its 2026 targets — 50% growth in EBITDA per berth and a 12% return on invested capital — 18 months ahead of schedule. It achieved its highest EBITDA margin in nearly two decades, supported by strong close-in ticket demand, onboard spending, and cost control.
In fiscal 2025, Carnival will debut Celebration Key, a flagship private Caribbean destination featuring the world’s largest swim-up bar, expansive lagoons, and curated beach experiences. Additional upgrades to Half Moon Cay and Mahogany Bay (to be rebranded Isla Tropicale) further strengthen its “Paradise Collection” strategy to attract and retain guests.
Additionally, Carnival is revamping its fleet through the AIDA Evolution upgrade and moderate newbuild pipeline. It is also launching a new loyalty program — Carnival Rewards — in mid-2026, which ties benefits to overall spend and credit card use. This initiative, modeled after successful airline programs, is expected to boost guest engagement in the upcoming period.
On the financial side, Carnival refinanced $7 billion of debt so far in fiscal 2025 and improved its net debt-to-EBITDA ratio sequentially from 4.1x to 3.7x in the fiscal second quarter 2025. With limited new ship deliveries through 2029 and growing free cash flow, Carnival is focused on regaining investment-grade status while delivering long-term shareholder value.
The Case for RCL Stock
Royal Caribbean is executing on its “Perfecta Performance” strategy by combining premium guest experiences, moderate capacity expansion, and disciplined cost management to drive strong financial growth. In the first quarter of 2025, the company reported yield growth of 5.6% and a 35% EBITDA margin — up 360 basis points year over year — fueled by exceptional close-in demand, pricing power, and elevated onboard spending.
The company continues to expand its exclusive destination portfolio with the upcoming Royal Beach Club in Nassau, designed to complement its popular Perfect Day at CocoCay. The club will feature curated beach experiences, elevated dining, and expanded guest capacity, intended to deepen guest engagement and boost ancillary revenues.
Royal Caribbean’s growing digital footprint is another key differentiator. Its mobile app, now widely adopted across the fleet, is driving higher levels of direct booking and pre-cruise purchases. Loyalty program integration and frictionless trip planning are central to the company’s efforts to improve revenue capture and increase repeat travel.
However, the company may face near-term pressure related to ship deployment timing and elevated expenses tied to destination rollouts and dry dock activity. Cost growth is expected to vary across quarters, primarily influenced by the scheduling of dry docks, ship deliveries, and the ramp-up of expenses tied to the Costa Maya port acquisition and other destination investments. The second and third quarters are expected to have higher costs, with the third quarter particularly affected, facing a 280-basis-point impact from these timing-related factors.
How Does Zacks Consensus Estimate Compare for CCL & RCL?
The Zacks Consensus Estimate for Carnival’s fiscal 2025 sales and earnings per share (EPS) suggests year-over-year increases of 5.4% and 38%, respectively. In the past 60 days, earnings estimates for fiscal 2025 have risen 3.8%.
For Carnival
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Royal Caribbean’s 2025 sales and EPS suggests year-over-year increases of 9.4% and 30.7%, respectively. In the past 60 days, earnings estimates for 2025 have increased 6%.
For Royal Caribbean
Image Source: Zacks Investment Research
Price Performance & Valuation of CCL & RCL
Carnival stock has rallied 31.7% in the past three months, significantly outpacing its industry and the S&P 500’s rise of 15.8% and 10.1%, respectively. Meanwhile, Royal Caribbean shares have risen 42.6% in the same time.
CCL & RCL Stock 3-Month Year Price Performance
Image Source: Zacks Investment Research
Carnival is trading at a forward 12-month price-to-earnings (P/E) ratio of 12.92X, below the industry average of 18.59X over the last year. RCL’s forward 12-month P/E multiple sits at 17.92X over the same time frame.
Image Source: Zacks Investment Research
Average Target Price for CCL Suggests an Upside
Based on short-term price targets offered by 23 analysts, Carnival’s average price target represents an increase of 10.7% from the last closing price of $26.17.
CCL Price Target
Image Source: Zacks Investment Research
Based on short-term price targets offered by 24 analysts, RCL’s average price target represents a decline of 7.1% from the last closing price of $295.89.
RCL Price Target
Image Source: Zacks Investment Research
CCL - A Buy Now
Given their contrasting strategies, Carnival presents a more attractive near-term buying opportunity than Royal Caribbean. While RCL continues to deliver premium experiences and superior margins, it faces near-term cost pressures related to destination rollouts and dry dock activity. Carnival, on the other hand, is delivering operational efficiency and financial gains through disciplined execution, fleet upgrades, and destination-led brand differentiation. Its early achievement of long-term margin and sustainability targets, coupled with attractive valuation and rising earnings estimates, highlights a clear edge.
With a Zacks Rank #2 (Buy) and momentum on its side, Carnival offers a compelling entry point for investors seeking near-term gains and long-term value. Meanwhile, RCL, carrying a Zacks Rank #3 (Hold), may warrant a wait-and-see approach. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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CCL vs. RCL: Which Cruise Line Stock is the Smarter Buy Right Now?
Key Takeaways
As consumer appetite for experiential travel continues to rebound, cruise operators like Carnival Corporation & plc (CCL - Free Report) and Royal Caribbean Cruises Ltd. (RCL - Free Report) are vying for investor attention with strong brand portfolios and improving fundamentals. Both companies are capitalizing on elevated demand and pricing power, setting them up for growth.
However, differences in strategy, innovation, and operational discipline raise the question: which cruise stock stands out more favorably in the current climate?
Let’s see how these two cruise giants stack up.
The Case for CCL Stock
Carnival is leveraging its global scale and multi-brand strategy to deliver robust yield growth and operational momentum. Carnival recently exceeded its 2026 targets — 50% growth in EBITDA per berth and a 12% return on invested capital — 18 months ahead of schedule. It achieved its highest EBITDA margin in nearly two decades, supported by strong close-in ticket demand, onboard spending, and cost control.
In fiscal 2025, Carnival will debut Celebration Key, a flagship private Caribbean destination featuring the world’s largest swim-up bar, expansive lagoons, and curated beach experiences. Additional upgrades to Half Moon Cay and Mahogany Bay (to be rebranded Isla Tropicale) further strengthen its “Paradise Collection” strategy to attract and retain guests.
Additionally, Carnival is revamping its fleet through the AIDA Evolution upgrade and moderate newbuild pipeline. It is also launching a new loyalty program — Carnival Rewards — in mid-2026, which ties benefits to overall spend and credit card use. This initiative, modeled after successful airline programs, is expected to boost guest engagement in the upcoming period.
On the financial side, Carnival refinanced $7 billion of debt so far in fiscal 2025 and improved its net debt-to-EBITDA ratio sequentially from 4.1x to 3.7x in the fiscal second quarter 2025. With limited new ship deliveries through 2029 and growing free cash flow, Carnival is focused on regaining investment-grade status while delivering long-term shareholder value.
The Case for RCL Stock
Royal Caribbean is executing on its “Perfecta Performance” strategy by combining premium guest experiences, moderate capacity expansion, and disciplined cost management to drive strong financial growth. In the first quarter of 2025, the company reported yield growth of 5.6% and a 35% EBITDA margin — up 360 basis points year over year — fueled by exceptional close-in demand, pricing power, and elevated onboard spending.
The company continues to expand its exclusive destination portfolio with the upcoming Royal Beach Club in Nassau, designed to complement its popular Perfect Day at CocoCay. The club will feature curated beach experiences, elevated dining, and expanded guest capacity, intended to deepen guest engagement and boost ancillary revenues.
Royal Caribbean’s growing digital footprint is another key differentiator. Its mobile app, now widely adopted across the fleet, is driving higher levels of direct booking and pre-cruise purchases. Loyalty program integration and frictionless trip planning are central to the company’s efforts to improve revenue capture and increase repeat travel.
However, the company may face near-term pressure related to ship deployment timing and elevated expenses tied to destination rollouts and dry dock activity. Cost growth is expected to vary across quarters, primarily influenced by the scheduling of dry docks, ship deliveries, and the ramp-up of expenses tied to the Costa Maya port acquisition and other destination investments. The second and third quarters are expected to have higher costs, with the third quarter particularly affected, facing a 280-basis-point impact from these timing-related factors.
How Does Zacks Consensus Estimate Compare for CCL & RCL?
The Zacks Consensus Estimate for Carnival’s fiscal 2025 sales and earnings per share (EPS) suggests year-over-year increases of 5.4% and 38%, respectively. In the past 60 days, earnings estimates for fiscal 2025 have risen 3.8%.
For Carnival
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Royal Caribbean’s 2025 sales and EPS suggests year-over-year increases of 9.4% and 30.7%, respectively. In the past 60 days, earnings estimates for 2025 have increased 6%.
For Royal Caribbean
Image Source: Zacks Investment Research
Price Performance & Valuation of CCL & RCL
Carnival stock has rallied 31.7% in the past three months, significantly outpacing its industry and the S&P 500’s rise of 15.8% and 10.1%, respectively. Meanwhile, Royal Caribbean shares have risen 42.6% in the same time.
CCL & RCL Stock 3-Month Year Price Performance
Image Source: Zacks Investment Research
Carnival is trading at a forward 12-month price-to-earnings (P/E) ratio of 12.92X, below the industry average of 18.59X over the last year. RCL’s forward 12-month P/E multiple sits at 17.92X over the same time frame.
Image Source: Zacks Investment Research
Average Target Price for CCL Suggests an Upside
Based on short-term price targets offered by 23 analysts, Carnival’s average price target represents an increase of 10.7% from the last closing price of $26.17.
CCL Price Target
Image Source: Zacks Investment Research
Based on short-term price targets offered by 24 analysts, RCL’s average price target represents a decline of 7.1% from the last closing price of $295.89.
RCL Price Target
Image Source: Zacks Investment Research
CCL - A Buy Now
Given their contrasting strategies, Carnival presents a more attractive near-term buying opportunity than Royal Caribbean. While RCL continues to deliver premium experiences and superior margins, it faces near-term cost pressures related to destination rollouts and dry dock activity. Carnival, on the other hand, is delivering operational efficiency and financial gains through disciplined execution, fleet upgrades, and destination-led brand differentiation. Its early achievement of long-term margin and sustainability targets, coupled with attractive valuation and rising earnings estimates, highlights a clear edge.
With a Zacks Rank #2 (Buy) and momentum on its side, Carnival offers a compelling entry point for investors seeking near-term gains and long-term value. Meanwhile, RCL, carrying a Zacks Rank #3 (Hold), may warrant a wait-and-see approach. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.