Core Insights - Carnival Corporation & plc (CCL) is enhancing investor confidence through operational momentum and significant balance sheet improvements [1][4] - The company has made substantial progress in refinancing its debt, which is expected to lower net interest expenses and simplify its capital structure [2][4] Financial Performance - In Q2 of fiscal 2025, Carnival prepaid $350 million of its $1.4 billion notes due in 2026 and refinanced the remaining amount with senior unsecured notes maturing in 2031, projected to reduce net interest expense by over $20 million through early 2026 [1][2] - Total debt as of May 31, 2025, was $27.3 billion, a slight decrease from $27.48 billion reported on Nov. 30, 2024 [2] - The net debt-to-EBITDA ratio improved to 3.7x in Q2, down from 4.1x in Q1, indicating effective deleveraging [3][7] Market Position - CCL shares have surged 62.1% over the past three months, outperforming the industry growth of 36.2% [5] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 13.53X, below the industry average of 19.88X, suggesting it is undervalued compared to peers [8] Earnings Outlook - The Zacks Consensus Estimate for Carnival's fiscal 2025 earnings per share has been revised upward from $1.87 to $1.98, reflecting strong analyst confidence [10] - Projections indicate a 39.4% rise in fiscal 2025 earnings for Carnival, compared to expected increases of 30.9%, 11.5%, and 16.5% for competitors Royal Caribbean, Norwegian Cruise, and OneSpaWorld, respectively [11]

Group 1 - Citigroup raised the target price for Carnival Corporation from $30 to $37 [1]

Core Insights - Carnival Corporation & plc (CCL) shares have increased by 20.3% in the past month, outperforming the Zacks Leisure and Recreation Services industry's growth of 11.8% and the S&P 500's growth of 3.7% [1][2] Financial Performance - Carnival has achieved record-breaking earnings, with EBITDA rising 26% year over year and net income more than tripling [6] - The company has met its 2026 financial targets 18 months ahead of schedule, indicating strong commercial execution and operational discipline [6] - For fiscal 2025, Carnival raised its adjusted EBITDA forecast to approximately $6.9 billion, up from $6.7 billion, reflecting over 10% year-over-year growth [13] Demand and Pricing - Net yields increased by 6.5% in the fiscal second quarter, driven by strong ticket pricing and onboard spending [7] - 93% of 2025 capacity is already booked at historically high prices, indicating strong demand and pricing power [8] Strategic Developments - The anticipated July debut of Celebration Key is expected to generate strong consumer interest and command pricing premiums [10] - Carnival is modernizing its fleet with the AIDA Evolution program and launching new ships with family-friendly amenities [11] Analyst Sentiment - Analysts maintain a positive outlook on Carnival, with an average price target of $30.04, suggesting a potential upside of 4.8% from the last closing price [23] - The company holds an average brokerage recommendation of 1.60, indicating a favorable outlook [24] Stock Valuation - Carnival stock is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 13.40X, below the industry average of 19.79X, presenting an attractive investment opportunity [17]

Group 1: Carnival Corporation - Carnival is the leading global cruise operator, recovering from extreme debt and showing strong business performance with stock still 60% off its highs [4] - The stock price has risen 64% over the past year, trading at a price-to-sales ratio of 1.5 and a forward P/E ratio under 13, indicating potential for further gains [5] - In Q2 of fiscal 2025, Carnival reported revenue of $6.3 billion, a 9% year-over-year increase, with operating income rising from $560 million to $934 million [6] - The company had record deposits of $8.5 billion and is maintaining high bookings, alleviating concerns about demand drying up [7] - Carnival ended the quarter with $27 billion in total debt, having refinanced $7 billion at more favorable rates, and is close to achieving investment-grade credit ratings [8] - Carnival stock may appeal to investors willing to take on some risk, as the company is expected to bounce back and reward shareholders [9] Group 2: Williams-Sonoma - Williams-Sonoma targets the upscale housewares market and has faced challenges due to macroeconomic pressures, particularly in the sluggish real estate sector [11] - The company reported a 3.4% year-over-year increase in comparable brand revenue and an operating margin of 16.8%, exceeding guidance [12] - Williams-Sonoma has a diversified supplier base, with only 23% of its products sourced from China, positioning it well to handle tariff changes [12] - The company emphasizes a "digital first, not digital only" strategy, with e-commerce accounting for 66% of total sales in Q1 of fiscal 2025, tapping into a $830 billion addressable market [14] - Despite a decline of 8% in stock price this year, investor enthusiasm is returning, and the stock offers a dividend yield of 1.4% [15] - The stock trades at a forward P/E ratio of 19, presenting a potential entry point for investors [15]

Core Viewpoint - Carnival Corporation's stock is expected to continue surprising positively in the short term due to strong financial performance and an upgraded outlook [1]. Financial Performance - The company has demonstrated robust financial results, which contribute to a favorable market perception [1]. Market Outlook - There is an upgraded outlook for Carnival Corporation, indicating potential for growth and positive investor sentiment [1]. Industry Context - The cruise industry is experiencing a positive turn, which may benefit Carnival Corporation and its stock performance [1].

For in-depth and deep dive research on the casino and gaming sector, subscribe to The House Edge . New: Free excerpts from our book in progress "The Smartest Ever Guide to Gaming Stocks" - free to existing members and new subscribers.After a brilliant 1Q25 performance, Carnival Corporation & plc (NYSE: CCL ) stock only dribbled up to around $30, from $24. Recall that CCL was disproportionally punished by COVID in 2020, falling from a high of $63 pre-COVID to the low $20s. RecoveryHoward Jay Klein has 30 yea ...

Core Insights - Carnival Corporation & plc (CCL) is focusing on a high-margin, experience-led strategy by investing in exclusive Caribbean destinations to enhance revenue streams [1] - The centerpiece of this strategy is Celebration Key, a 275,000-square-foot lagoon destination set to open in July, which is expected to drive brand engagement and yield premiums [2] - Carnival is also expanding its "Paradise Collection" with enhancements to existing properties to increase guest throughput and revenue per passenger [3] Revenue Growth Strategy - By leveraging unique land-based assets and extending the advanced booking window, the company aims to optimize pricing and enhance consumer conversion [4] - With over 2 million annual visitors expected across its properties, Carnival anticipates a significant impact on yield and per-passenger spending [5] - For fiscal 2025, Carnival expects net yields to be approximately 5.6% higher than 2024 levels [5] Competitive Landscape - Royal Caribbean Cruises Ltd. (RCL) has a destination-first strategy, with over 70% of its Caribbean itineraries including private destinations, expected to rise to 90% by 2027 [6] - Norwegian Cruise Line Holdings Ltd. (NCLH) is enhancing its private island, Great Stirrup Cay, to double its capacity by 2026, supporting stronger onboard monetization [7] Financial Performance - CCL shares have increased by 49.5% in the past three months, outperforming the industry's growth of 26.5% [8] - The company is optimistic about the Celebration Key opening, supported by strong early bookings, and expects FY25 net yields to rise by 5.6% over FY24 [9] - CCL trades at a forward price-to-earnings ratio of 13.82X, significantly below the industry average of 19.68X [10] Earnings Estimates - The Zacks Consensus Estimate for CCL's fiscal 2025 and 2026 earnings indicates a year-over-year increase of 38% and 13.4%, respectively [11]

Industry Overview - The Leisure and Recreation Services industry is experiencing growth due to optimized business processes, consistent partnerships, and digital initiatives [1] - Strong demand for concerts, easing trade tensions, and robust bookings for cruise operators are supporting the industry [1][2] Cruise Industry - The cruise industry is benefiting from strong demand and increasing booking volumes, with solid pricing and onboard spending contributing positively [3] - Carnival Corporation & plc (CCL) is raising its full-year 2025 guidance due to sustained demand strength and operational efficiency [5][6] - CCL has an expected revenue growth rate of 5.4% and earnings growth rate of 38% for the current year [6] Theme Park Industry - The theme park industry is also seeing robust demand, with operators benefiting from improved visitation [3] Company Highlights - **Carnival Corporation & plc (CCL)**: Zacks Rank 2, benefiting from increased booking volumes and onboard revenues, with a P/E ratio of 15.1X compared to the industry average of 21.7X [5][7] - **Manchester United plc (MANU)**: Zacks Rank 1, expected revenue growth of 9.6% and earnings growth of 56.6% for the current year, with a potential upside of 50.1% from current brokerage targets [10][12][13] - **The Marcus Corporation (MCS)**: Zacks Rank 2, engaged in lodging and entertainment, with expected revenue growth of 5.2% and earnings growth of over 100% for the current year [14][15] - **Madison Square Garden Sports Corp. (MSGS)**: Zacks Rank 2, expected revenue growth of 6.5% and earnings growth of over 100% for the current year, with a potential price target increase of 24.8% [18][20] - **Pursuit Attractions and Hospitality Inc. (PRSU)**: Zacks Rank 1, expected revenue growth of 6.2% and earnings growth of 11% for the next year, with a potential price target increase of 44.4% [22][23][24]

Company Overview - Carnival (CCL) currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Price Performance - Over the past week, CCL shares have increased by 14.68%, outperforming the Zacks Leisure and Recreation Services industry, which rose by 2.69% [5] - In a longer time frame, CCL's shares have risen by 23.39% over the past month, compared to the industry's 5.85% [5] - Over the last quarter, CCL shares have surged by 69.84%, and over the past year, they have increased by 74.08%, while the S&P 500 has only moved 24.12% and 14.76%, respectively [6] Trading Volume - CCL's average 20-day trading volume is 27,659,148 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 7 earnings estimates for CCL have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $1.85 to $1.96 [9] - For the next fiscal year, 6 estimates have moved higher, with only 1 downward revision during the same period [9] Conclusion - Considering the positive price momentum, trading volume, and favorable earnings outlook, CCL is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Core Points - Holland America Line is launching a special cruise to celebrate America's 250th anniversary in 2026, departing from Boston on July 4, 2026 [1][3] - The seven-day cruise includes stops in Saint John, New Brunswick, an overnight stay in New York City, and a visit to Norfolk, Virginia, with access to historical sites [1][2][4] - The cruise aims to provide guests with a unique experience of American culture and history, featuring special events for the Fourth of July [3][6] Itinerary Highlights - The cruise will allow guests to view Boston's Fourth of July fireworks from the ship, enhancing the celebratory experience [2] - In Norfolk, guests can explore significant historical sites related to the Revolutionary War, including Williamsburg, Jamestown, and Yorktown [4][5] - The overnight stay in New York coincides with the "Sail 4th 250" tall ships event, providing guests with additional opportunities to experience the city's vibrant atmosphere [6][7] Pricing and Booking - Fares for the "America's 250th Celebration: Stars & Stripes Voyage" start at $1,459 per person for double occupancy, inclusive of port fees and taxes [8]