Carnival Stock: Is Wall Street Bullish or Bearish?
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Carnival Corporation (CCL), headquartered in Miami, Florida, is the world’s largest cruise operator with a market cap of $25.4 billion. As a global leader in leisure travel, Carnival serves nearly half of all cruise passengers worldwide. The company operates through four key segments: North America and Australia (NAA) Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other.
Shares of the cruise line operator have outperformed the broader market considerably over the past year. CCL has gained 93% over this time frame, while the S&P 500 Index ($SPX) has risen 36.9%. But in 2024, CCL stock is down 18.7%, while the SPX is up 19.6% on a YTD basis.
Zooming in further, CCL’s gains over the past 52 weeks easily overshadow the Defiance Hotel, Airline, and Cruise ETF (CRUZ). The exchange-traded fund has gained nearly 42.7% over the past year and 14.8% in 2024.
Following a further 6% recent drop in oil prices, transportation stocks gained strength. Carnival’s shares rose 1% on Oct. 29, alongside broader gains in airline and cruise stocks.
CCL surged over 7% on Oct. 9, as cruise line stocks rallied after a Citigroup Inc. (C) upgrade. Citigroup raised Carnival’ price target from $25 to $28, maintaining a "Buy" rating.
For the current fiscal year, ending in November, analysts expect CCL to report earnings per share of $1.33 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 21 analysts covering CCL stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buy” ratings, one “Moderate Buy,” two “Holds,” and one “Strong Sell.”
This configuration has been consistent over the past months.
The mean price target of $21.55 represents a 7.9% premium to CCL’s current price levels. The Street-high price target of $28 suggests an ambitious upside potential of 27.3%.
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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.