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Valued at a market cap of almost $32.1 billion, Carnival Corporation & plc (CCL) operates as a cruise and vacation company that provides leisure travel services. The Miami, Florida-based company operates port destinations, private islands, and a solar park, as well as owns and operates hotels, lodges, glass-domed railcars, and motor coaches.
Shares of this cruise vacation company have significantly outpaced the broader market over the past 52 weeks. CCL has rallied 68.6% over this time frame, while the broader S&P 500 Index ($SPX) has gained 22.6%. Moreover, over the past six months, the stock is up 61.8%, significantly higher than SPX’s 10.5% rise.
Zooming in further, CCL has also outshined the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 32.6% gain over the past 52 weeks and 24.4% return on a six-month basis.
On Dec. 20, shares of CCL surged 6.4% after its Q4 earnings release as the company delivered better-than-expected Q4 earnings of $0.14 per share and revenues of $5.9 billion, which came in line with the Street’s forecast. Moreover, its top line grew by 10% year-over-year, while its bottom line massively improved from a loss of $0.07 per share in the year-ago quarter. The upside was primarily fueled by sustained demand strength and increased booking volumes.
For the current fiscal year, ending in November, analysts expect CCL’s EPS to grow 23.9% year over year to $1.76. The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 22 analysts covering the stock, the consensus rating is a “Strong Buy,” which is based on 17 “Strong Buy,” one “Moderate Buy,” three “Hold,” and one “Strong Sell” rating.
On Dec. 12, Citi maintained a “Buy” rating on CCL and raised its price target to $30, which indicates a 7.5% potential upside from the current levels.
The mean price target of $29.41 represents a 5.4% upside from CCL’s current price levels, while the Street-high price target of $35 suggests an upside potential of 25.4%.
