From Yahoo Finance: 2025-04-19 14:41:00

Carnival (NYSE: CCL) is the largest cruise line operator globally, with eight cruise lines and over 90 ships. The pandemic caused major losses and debt, but strong demand has spurred a comeback.

Despite a revenue decline of 73% and 66% in fiscal 2020 and 2021, Carnival saw a 13-fold sales increase between fiscal 2021 and 2024. The company posted record revenue growth in the first quarter of 2025.

Carnival’s financials are improving, with a 97% year-over-year growth in operating income and debt refinancing to lower interest payments. The stock is trading at a compelling valuation with a forward P/E ratio of 9.6.

Investors should consider the risks, including macroeconomic uncertainty and the company’s high debt load. However, consumer spending on cruises is expected to rise, and Carnival raised its guidance for fiscal 2025 financial metrics.

While Carnival may offer growth potential, investors should diversify their portfolios. The Motley Fool’s Stock Advisor team identified the 10 best stocks to buy now, with Carnival not making the cut for potential monster returns in the coming years.

Read more: Could a $10,000 Investment in Carnival Stock Make You a Millionaire?