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Carnival Corporation & plc (CCL) is a top cruise and vacation company worth a market cap of $30.9 billion. Headquartered in Miami, Florida, Carnival operates a world-renowned cruise brand portfolio, offering travelers memorable vacation experiences worldwide.
Companies valued at $10 billion or more are generally described as "large-cap stocks," and Carnival is a prime example of this. As the world’s largest cruise company, CCL boasts a diverse portfolio of leading global cruise brands that cater to various market segments. Its extensive fleet, innovative ship designs, and global itineraries provide a unique and wide-reaching customer experience.
The company benefits from strong brand recognition, operational efficiencies, and economies of scale, allowing it to maintain cost leadership and competitive pricing.
CCL shares touched their 52-week high of $27.17 in the last trading session. The stock has gained 41.1% over the past three months, outperforming the Dow Jones Industrials Average’s ($DOWI) 1.9% gains during the same time frame.
In the longer term, CCL is up 44.6% on a YTD basis, and the shares have gained by 48.3% over the past 52 weeks. In comparison, the DOWI has gained 13.7% in 2024 and rallied 15.5% over the past year.
CCL has confirmed its bullish trend by trading above both its 50-day and 200-day moving averages since early September.
Carnival shares have more than tripled in price performance since the start of 2023. The company recently reported a strong fourth quarter, defying the usual slow fall season, with impressive gains in revenue, net yields, and future bookings. Notably, the word "record" appears 17 times in its earnings release, underscoring the company’s continued success.
On Dec. 20, CCL reported its Q4 earnings report, and its shares climbed by 6.4% to touch its 52-week high. It posted an adjusted profit of 14 cents per share, surpassing Wall Street's expectations of 8 cents. The company’s revenue reached $5.94 billion, which is in line with forecasts. Looking ahead, Carnival expects full-year earnings of $1.70 per share.
In the dynamic cruise landscape, Royal Caribbean Cruises Ltd. (RCL), a key competitor of CCL, has outperformed both the stock and the DOWI, showing a strong 84.1% return in 2024.
Analysts are still highly bullish about CCL's prospects despite its strong price performance. The stock has a consensus rating of "Strong Buy" from 22 analysts in coverage. The mean price target of $27.81 suggests a premium of 3.8% to its current levels.
