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CCL Trades Near 52-Week High: Harvest Gains or Stay Invested?

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Key Takeaways

  • Carnival trades near a 52-week high after a 35.5% three-month surge, outpacing the S&P 500 and industry.
  • Strong bookings, premium pricing, and rising onboard spend drive momentum across key cruise markets.
  • Balance sheet progress, record deposits, and higher EPS estimates highlight Carnivals growth trajectory.

Carnival Corporation & plc (CCL - Free Report) shares have been performing well. The stock is currently trading near its 52-week high of $32.77 (touched on Thursday, Aug. 28).

In the past three months, CCL stock has gained 35.5%, outperforming the Zacks Leisure and Recreation Services industry return of 19.4% and the S&P 500 Index growth of 9.5%.

CCL’s Stock 3-Month Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Technical indicators suggest continued strong performance for CCL. The stock is trading above its 50-day moving average, signaling robust upward momentum and price stability.

CCL Stock Trades Above 50-Day Moving Average

Zacks Investment Research
Image Source: Zacks Investment Research

Key Drivers of Carnival’s Stock Performance

Robust Booking Momentum: Carnival is riding a wave of robust demand, with record revenues and yields sustained for eight consecutive quarters. Advanced bookings remain near historic highs, supported by longer lead times and limited capacity expansion. Europe and Caribbean itineraries continue to deliver solid results, while close-in demand has driven premium pricing and stronger onboard revenues. This momentum highlights Carnival’s edge in providing compelling value compared with land-based vacations.

Strength in Onboard Spending: The company is also benefiting from higher onboard spending, which outpaced expectations across all categories in the second quarter. Targeted marketing initiatives, bundled packages, and pre-booked offers have helped boost per-guest spend. Early signs indicate that this trend will persist into the back half of 2025, positioning onboard revenue as a critical driver of yield expansion.

Destination and Fleet Enhancements: Carnival’s destination strategy is gaining traction. Celebration Key has already generated premium pricing and is among the most searched cruise destinations. Planned upgrades at RelaxAway (Half Moon Cay) and Isla Tropicale further strengthen its competitive positioning against land-based alternatives. At the same time, fleet initiatives like the AIDA Evolution program, the launch of Star Princess, and upcoming Excel-class ships (Carnival Festivale and Carnival Tropicale) are expected to fuel incremental demand and enhance brand appeal.

Improved Financial Foundation: Carnival has accelerated progress toward restoring its balance sheet. In second quarter fiscal 2025, the company prepaid $350 million of 2026 notes and refinanced the remainder with 2031 senior unsecured debt, reducing net interest expense by $20 million. Net debt-to-EBITDA improved to 3.7x from 4.1x in the prior quarter, moving the company closer to investment-grade status. 

With customer deposits at record highs and full-year yield guidance raised to 5%, Carnival’s turnaround momentum is accelerating. The company’s balance sheet recovery — reflected in improved leverage metrics and lower interest costs — provides both a cushion against macro volatility and a foundation to unlock further shareholder value through sustainable growth and ongoing deleveraging.

Earnings Estimates for CCL Move Upward

Over the past 60 days, the Zacks Consensus Estimate for Carnival’s fiscal 2025 EPS has been revised upward, increasing from $1.96 to $2.00. This upward trend reflects strong analyst confidence in the stock’s near-term prospects.

CCL Earnings Estimate Trend

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Image Source: Zacks Investment Research

The 60-day earnings estimate growth trend for CCL remains higher for 2025 compared with other industry players, including Royal Caribbean Cruises Ltd. (RCL - Free Report) , Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and OneSpaWorld Holdings Limited (OSW - Free Report) . Over the past 60 days, earnings estimates for 2025 for RCL, NCLH and OSW have increased 1.2%, 0.5% and 2% respectively, in the same time frame.

CCL Stock Returns Higher Than the Industry

CCL’s trailing 12-month return on equity (ROE) is indicative of its growth potential. ROE for the trailing 12 months is 27.88%, higher than the industry’s 24.29%. This reflects the company’s efficient usage of shareholder funds.

Zacks Investment Research
Image Source: Zacks Investment Research

Carnival Stock Trades at a Discount

Carnival stock is currently trading at a discount. CCL is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 14.45, well below the industry average of 20.38, reflecting an attractive investment opportunity. Other industry players, such as Royal Caribbean, Norwegian Cruise and OneSpaWorld, have P/E ratios of 20.89, 10.57 and 20.41, respectively.

Zacks Investment Research
Image Source: Zacks Investment Research

Conclusion: Buy Carnival Stock for Now

Carnival’s performance underscores a powerful turnaround story. With record bookings, stronger onboard spending, strategic investments in destinations and fleet upgrades, and a rapidly improving balance sheet, the company is positioned to sustain growth. Analyst upgrades to earnings estimates and a return on equity above the industry average reinforce confidence in its trajectory. Importantly, the stock still trades at a discount to peers, offering investors an attractive entry point despite its rally to near 52-week highs. For now, the fundamentals support accumulating Carnival stock. Further upside is likely as the company executes on its growth and deleveraging strategies.

Currently, CCL carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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