Core Insights - Carnival Corporation & plc (CCL) shares have increased by 20.8% over the past six months, outperforming the Zacks Leisure and Recreation Services industry, which fell by 0.2%, and the S&P 500, which grew by 17.7% [1][6]. Financial Performance - The company has demonstrated strengthening fundamentals, driven by robust booking trends, sustained yield growth, and disciplined operational execution [2][3]. - Carnival's upgraded fiscal 2025 guidance anticipates adjusted EBITDA of approximately $7.05 billion, adjusted net income of about $2.925 billion, and adjusted EPS of approximately $2.14, reflecting over 15% growth year over year [13][14]. Market Position - Carnival's recent performance is supported by resilient global demand and firm pricing momentum, with record booking volumes and strong pricing strength in both North American and European markets [7][8]. - The successful launch of Celebration Key and enhancements to Half Moon Cay are expanding the company's network of high-value destinations, allowing for premium pricing and enhanced guest engagement [9]. Operational Efficiency - The company is focused on operational efficiency, driving cost reductions through energy optimization and disciplined expense management, which helps preserve pricing power [10][11]. - Ongoing deleveraging efforts have improved Carnival's balance sheet, moving closer to investment-grade leverage levels, and strong cash flow generation provides flexibility for strategic investments [11][12]. Valuation and Returns - Carnival has a trailing 12-month return on equity of 27.87%, higher than the industry average of 24.29%, indicating efficient use of shareholders' funds [19]. - The stock is currently trading at a forward 12-month P/E multiple of 11.21, below the industry average of 16, presenting an attractive investment opportunity [20]. Technical Indicators - From a technical perspective, CCL is trading above its 200-day moving average, indicating strong upward momentum and price stability [21]. Conclusion - Carnival's recent rally reflects growing investor confidence, supported by record booking volumes, strong onboard spending, and expanding destination offerings, reinforcing pricing strength and earnings visibility into 2026 and beyond [26][27]. - The combination of robust fundamentals, steady execution, and appealing valuation positions Carnival as a compelling opportunity in the travel and leisure sector [28].

Core Viewpoint - The comparison between Carnival (CCL) and Airbnb, Inc. (ABNB) indicates that CCL currently offers better value for investors based on various financial metrics and analyst outlooks [1][3]. Valuation Metrics - CCL has a forward P/E ratio of 12.45, significantly lower than ABNB's forward P/E of 28.59, suggesting that CCL is undervalued relative to ABNB [5]. - The PEG ratio for CCL is 0.55, while ABNB's PEG ratio is 2.20, indicating that CCL has a more favorable growth outlook relative to its price [5]. - CCL's P/B ratio stands at 2.62, compared to ABNB's P/B of 8.72, further supporting the argument that CCL is a more attractive investment option [6]. Analyst Ratings - CCL holds a Zacks Rank of 1 (Strong Buy), while ABNB has a Zacks Rank of 3 (Hold), reflecting a more positive earnings estimate revision trend for CCL [3][6]. - Based on the combination of valuation metrics and analyst ratings, CCL is positioned as the superior value option compared to ABNB [6].

Core Insights - The COVID-19 pandemic created contrasting outcomes for Carnival and Roblox, with Carnival facing severe challenges while Roblox thrived during the lockdowns [1][2] Carnival's Performance - Carnival's total revenue dropped from $20.8 billion in fiscal 2019 to $1.9 billion in fiscal 2021 due to the pandemic, resulting in net losses of $10.2 billion in fiscal 2020 and $9.5 billion in fiscal 2021 [4] - To maintain solvency, Carnival idled ships, cut spending, and increased its year-end debt from $11.5 billion in fiscal 2019 to $33.2 billion in fiscal 2021 [5] - By fiscal 2023, Carnival's revenue rebounded to $21.6 billion, exceeding pre-pandemic levels, and is projected to grow to $25 billion in fiscal 2024, with a net profit of $1.9 billion [8] - Analysts forecast Carnival's revenue and earnings per share (EPS) to grow at a compound annual growth rate (CAGR) of 5% and 24% respectively from fiscal 2024 to fiscal 2027 [9] Roblox's Performance - Roblox experienced significant growth during the pandemic, with bookings surging 45% in 2021 and daily active users (DAUs) increasing by 40% [13] - However, as pandemic restrictions eased, Roblox's growth metrics slowed, leading to a drop in stock price to a low of $21.65 in May 2022 [14] - In 2023, Roblox's bookings increased by 23%, and DAUs rose from 58.8 million in fiscal 2022 to 85.3 million in fiscal 2024, indicating a recovery [15] - Despite this growth, Roblox is expected to remain unprofitable due to high infrastructure costs and nearly $1 billion in debt [16] Investment Outlook - While Roblox has shown strong growth, its capital-intensive model raises sustainability concerns, whereas Carnival, despite slower growth, is profitable and presents a more attractive investment opportunity in the current market [17]

Core Insights - The Star Princess, the newest ship from Princess Cruises, was officially named in a ceremony featuring Camila and Matthew McConaughey as godparents, highlighting the ship's innovative design and future itineraries [1][4][12] Group 1: Naming Ceremony - The naming ceremony was hosted by travel personality Dawn McCoy and included tributes from Princess President Gus Antorcha and Captain Gennaro Arma, along with a performance by Sheryl Crow and a drone show [2][4] - Camila and Matthew McConaughey expressed their honor in becoming godparents, emphasizing the importance of family and memories during the cruise experience [3][4] Group 2: Ship Features and Specifications - Star Princess has a gross tonnage of 177,800 tons and can accommodate 4,300 guests, showcasing Princess Cruises' commitment to exceptional guest service and luxurious amenities [5][12] - The ship will begin its Caribbean season on November 7, 2025, and will later offer 7-day Alaska Inside Passage cruises starting in summer 2026 [7] Group 3: Entertainment and Dining - New entertainment offerings include the "Spellbound" magic show, original theatrical productions "Meridian" and "Illuminate," and a variety of vibrant onboard activities [11] - Guests can choose from 30 dining and bar venues, featuring collaborations with celebrity chefs and unique culinary experiences [11]

Core Insights - The article emphasizes the importance of understanding macro trends and their influence on asset prices and investor behavior, particularly in the context of equity analysis and research [1]. Group 1: Professional Background - The company has over 10 years of experience in asset management, focusing on equity analysis, macroeconomics, and risk-managed portfolio construction [1]. - The expertise covers both institutional and private client asset management, with a strong emphasis on multi-asset strategies [1]. - The analyst holds a BA in Financial Economics and an MA in Financial Markets, indicating a solid educational foundation in finance [1]. Group 2: Investment Philosophy - The company aims to make investing accessible, inspiring, and empowering, promoting the idea of building confidence in long-term investing [1]. - The analysis and opinions shared are intended for informational purposes, encouraging readers to conduct their own research before making investment decisions [1].

Core Insights - The article emphasizes the importance of unique insights and knowledge in stock analysis, aiming to provide contrasting views on investment portfolios [1] Group 1 - The analyst expresses a commitment to a wide range of stocks, indicating a diverse investment approach [1] - There is a focus on engaging with other investors through direct messages or comments, highlighting a community-oriented approach [1] Group 2 - The analyst discloses no current stock or derivative positions in the mentioned companies, ensuring transparency in their analysis [2] - The article reflects the author's personal opinions and not those of any affiliated organization, reinforcing independence in the analysis [2][3]

Core Viewpoint - Carnival has been trending in stock searches, prompting analysis of factors influencing its future stock performance [1] Earnings Estimates Revisions - Carnival is expected to report earnings of $0.24 per share for the current quarter, reflecting a year-over-year increase of +71.4% [5] - The consensus earnings estimate for the current fiscal year is $2.15, indicating a +51.4% change from the previous year [5] - For the next fiscal year, the earnings estimate is $2.4, showing an increase of +11.7% from the prior year [6] - The Zacks Consensus Estimate has increased by +7.8% over the last 30 days for the current quarter and +1.4% for the current fiscal year [5][6] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $6.36 billion, representing a year-over-year increase of +7.1% [11] - For the current fiscal year, the sales estimate is $26.64 billion (+6.5%), and for the next fiscal year, it is $27.8 billion (+4.3%) [11] Last Reported Results and Surprise History - Carnival reported revenues of $8.15 billion in the last quarter, a +3.3% increase year-over-year, with an EPS of $1.43 compared to $1.27 a year ago [12] - The company exceeded the Zacks Consensus Estimate for revenues by +0.99% and for EPS by +8.33% [12] - Carnival has consistently beaten consensus EPS and revenue estimates in the last four quarters [13] Valuation - Carnival is graded A on the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [17] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [15][16] Conclusion - The Zacks Rank 1 suggests that Carnival may outperform the broader market in the near term, making it a stock worth monitoring [18]

Core Insights - Carnival reported strong Q3 fiscal 2025 results, with adjusted earnings and revenues exceeding estimates and showing year-over-year growth [2][4] - The company raised its full-year fiscal 2025 adjusted net income guidance for the third consecutive quarter, driven by stronger net yields and effective cost management [3][11] - Carnival's stock has seen an upward trend in estimates revision since the earnings release, indicating positive investor sentiment [12][14] Financial Performance - Adjusted EPS for Q3 was $1.43, surpassing the Zacks Consensus Estimate of $1.32 by 8.3%, and up from $1.27 in the prior year [4] - Total revenues reached $8.15 billion, beating the consensus mark of $8.07 billion by 1% and increasing 3.3% year over year [4] - Adjusted net income for the quarter was $1.98 billion, a 13.2% increase from $1.75 billion in the previous year [6] Revenue Breakdown - Passenger ticket revenues amounted to $5.43 billion, up from $5.24 billion in the prior-year quarter [5] - Onboard and other revenues increased to $2.72 billion from $2.66 billion reported in the year-ago quarter [5] Balance Sheet and Liquidity - As of August 31, 2025, cash and cash equivalents were $1.76 billion, up from $1.21 billion as of November 30, 2024 [7] - Total debt decreased to $26.5 billion from $27.48 billion as of November 30, 2024 [7] Booking Trends - Carnival has experienced strong booking momentum since May, with volumes exceeding last year and outpacing capacity growth [8] - Nearly half of fiscal 2026 is already booked at historical high prices, indicating strong demand [9] Future Outlook - For Q4 fiscal 2025, Carnival expects adjusted EBITDA of approximately $1.34 billion and adjusted net income of about $300 million [10] - The company anticipates adjusted EBITDA for fiscal 2025 to be around $7.05 billion, reflecting over 15% growth year over year [11] - The stock has a Zacks Rank 1 (Strong Buy), suggesting an expectation of above-average returns in the coming months [14]

Core Insights - Carnival Corporation & plc (CCL) is the largest cruise company globally, with a market cap of $34.3 billion, operating under brands like Carnival Cruise Line and Princess Cruises, and carrying nearly half of global cruise guests [1] Stock Performance - CCL shares have outperformed the broader market over the past 52 weeks, gaining 27.1% compared to the S&P 500 Index's 18.3% increase, but are up only 11.8% year-to-date, lagging behind the SPX's 17.2% rise [2] - Over the past 52 weeks, CCL shares have also outpaced the Consumer Discretionary Select Sector SPDR Fund's (XLY) return of 19.8% [3] Financial Performance - In Q3 2025, Carnival Corp reported adjusted EPS of $1.43 and revenue of $8.15 billion, exceeding expectations, yet shares fell nearly 4% on Sept. 29 due to projected cruise costs rising 3.3% for the year and potential impacts from increased investments in 2026 [4] - For the fiscal year ending in November 2025, analysts expect CCL's adjusted EPS to increase by 52.8% year-over-year to $2.17, with a strong earnings surprise history [5] Analyst Ratings and Price Targets - Among 25 analysts covering CCL, the consensus rating is a "Strong Buy," with 19 "Strong Buy" ratings, one "Moderate Buy," and five "Holds" [5] - Citi raised its price target on Carnival to $38, maintaining a "Buy" rating, with a mean price target of $35.43 indicating a 27.2% premium to the current price, and a Street-high price target of $43 suggesting a potential upside of 54.3% [6]

Group 1: Verizon - Verizon is not a high-growth stock, with revenue growth last exceeding 6% in 2009, but it generates significant cash flow from its 146.1 million accounts [2] - The company has a normalized net income margin in double digits for the past 10 years and offers a generous quarterly dividend with a current yield of 7.1%, the highest among the Dow Jones Industrial Average [3] - Despite a debt-heavy balance sheet, Verizon is trading at nine times trailing earnings and eight times forward earnings, making it an attractive value proposition in a historically overvalued market [5] Group 2: Carnival - Carnival has consistently surpassed analyst quarterly profit targets for three years, indicating underestimated earnings potential by Wall Street [7] - The cruise industry faced significant challenges due to the COVID-19 crisis, with operations halted for over 15 months, and even after restrictions were lifted, capacity and passenger requirements limited business recovery [8]