Carnival cruise operator sees 25% increase in shares and 75% rise in profits.

Holiday season is in full swing as tourists prepare to travel via planes, trains, and cruise ships. Carnival, a London and New York-listed cruise operator, has seen a 25% increase in shares following a 75% rise in profits for the first half of the year. Passenger numbers have surged from 5.7 million to 6.3 million.

Carnival was the best performer among Morningstar-rated stocks in Q2, behind Burberry and Deliveroo. Despite facing scrutiny over heavy debt during the pandemic, Carnival has returned to profitability and aims to refinance high-interest debt with cheaper loans. Analysts believe the company has long-term upside potential, particularly in higher-growth regions like Asia-Pacific.

While Carnival shares have not yet reached pre-covid highs, they have increased nearly 100% over the past five years. London-listed shares are currently undervalued, trading just below £20 with a fair value estimate of £24.10 according to Morningstar metrics. The author or authors do not own shares in any securities mentioned in the article.

Read more at Morningstar: Stock of The Week: Carnival Shares Are Rising