Wednesday's IBD 50 Stocks To Watch pick is cruise giant Carnival, which is in a buy range after regaining its buy point.
On June 25, Carnival reported adjusted earnings of 11 cents per share, an improvement from an adjusted loss of 31 cents per share last year. Revenue growth slowed for the eighth quarter in a row, to 18% or $5.78 billion. Carnival noted that sales were a record for the fiscal second quarter ended in May. In response, Carnival stock surged more than 8% in heavy volume.
FactSet's consensus estimate was for Carnival to report an adjusted loss of 1 cent per share on $5.68 billion in revenue.
Carnival said it continues to see strong booking momentum, with record volumes for 2025 sailings. The cruise line reported that its advanced booked position for the full 2025 year is already higher than 2024 in both price and occupancy.
For its full fiscal year ending in November, Carnival earnings are expected to jump to $1.17 per share, up from 1 cent in fiscal 2023, according to IBD MarketSurge. Carnival earnings are expected to rise another 31% in fiscal 2025.
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Carnival Stock In Buy Range
Carnival stock rallied 3.5% Tuesday, breaking out past an 18.92 buy point in a cup with handle, according to MarketSurge pattern recognition. That places the cruise leader in a new buy area that runs up to 19.87. The stock initially topped the entry July 16 but faded, although it never triggered sell signals.
Shares traded just below the buy point after the open Wednesday, as they declined 2%.
Carnival appears twice in the IBD 50 because its U.K.-based Carnival PLC stock also makes the list. Those shares are in buy range past a 17.34 buy point.
Carnival is a dual-listed company. Carnival PLC is traded on the London Stock Exchange and as American Depositary Shares on the New York Stock Exchange with the CUK symbol. The CUK and CCL charts are nearly identical.
The relative strength line is at its highest level since January, in a steady uptrend since early May. But it is lagging the stock price. The RS line compares a stock's price performance vs. the S&P 500.
Partly due to big earnings growth in recent quarters, Carnival stock boasts a strong 97 out of 99 IBD Composite Rating, according to IBD Stock Checkup.
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Other Best Stocks To Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Goldman Sachs | 471.48 | Flat base | |
| MercadoLibre | 1,792.05 | Cup with handle | |
| Palantir Technologies | 26.57 | Cup with handle |
Source: IBD Data As Of July 24
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