From Nasdaq: 2025-01-15 07:45:00

Carnival Co. & plc (NYSE: CCL) is the largest cruise ship operator globally, offering a variety of cruise line brands catering to different budgets and lifestyles. The company had a record-breaking 2024, setting a positive tone for 2025. Reasons to consider buying shares include strong earnings, revenue growth, and optimistic outlook for the future.

Carnival’s Q4 2024 earnings exceeded expectations, with a profit turnaround and increased revenues. Full-year figures showed record revenue, adjusted EBITDA, and operating income. Strong pricing and strategic targets for 2026 are driving growth. 2025 is expected to be another successful year with anticipated yield growth surpassing historical rates.

The incoming Trump administration’s energy policies may lead to lower fuel costs, benefitting Carnival and other cruise operators. This could expand operating margins and drive consumer demand, with Carnival already experiencing robust bookings for 2026. Carnival’s net debt to adjusted EBITDA ratio has improved to 4.3x.

Booking volumes for Carnival’s cruises are at an all-time high, with strong demand from new and repeat guests. Advanced bookings for 2025 and beyond show increasing prices and occupancy rates. Q1 2025 EPS guidance has been raised, indicating a positive outlook. However, full-year EPS estimates may be conservative.

CCL stock is showing a weekly bull flag pattern, indicating a potential bullish trend. Technical analysis points to a possible trigger if the stock surpasses key resistance levels. Analyst consensus price target for CCL is $27.18, with a 0.96% upside potential. Options strategies for investors include cash-secured puts and covered calls to capitalize on potential gains.



Read more at Nasdaq:: Carnival: 4 Reasons to Set Sail in This Stock in 2025