Core Viewpoint - Investors are evaluating Carnival (CCL) and Viking Holdings (VIK) to determine which stock offers better value at present [1] Group 1: Zacks Rank and Earnings Outlook - Carnival has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Viking Holdings, which has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank emphasizes stocks with positive earnings estimate revisions, suggesting that CCL has experienced a more favorable earnings outlook recently [2][3] Group 2: Valuation Metrics - CCL's forward P/E ratio is 11.90, significantly lower than VIK's forward P/E of 26.78, indicating that CCL may be undervalued [5] - CCL has a PEG ratio of 0.53, while VIK's PEG ratio is 0.77, further suggesting that CCL offers better value considering expected earnings growth [5] - CCL's P/B ratio stands at 2.52, compared to VIK's P/B of 36.83, highlighting a substantial difference in valuation metrics [6] Group 3: Value Grades - CCL has a Value grade of A, while VIK has a Value grade of C, indicating that CCL is perceived as a more attractive investment for value investors [6]

Financial Performance - Viking Holdings reported Q3 2025 revenue of $2.00 billion, a 19.12% increase year-over-year, exceeding guidance by $5.53 million [2] - The company achieved its highest quarterly Adjusted EBITDA of $704 million, reflecting a 26.9% year-over-year increase and an adjusted EBITDA margin of 52.8% [2] - Net income for the quarter reached $514 million, an increase of $135 million compared to Q3 2024, resulting in an Adjusted EPS of $1.20, up 33.2% [2] Analyst Sentiment - Jefferies analyst David Katz raised the price target for Viking Holdings to $60 from $59, maintaining a Hold rating on the shares following the strong Q3 results [1] - Initial projections for 2026 indicate strong performance in both the Ocean and River segments for Viking Holdings [1] Company Overview - Viking Holdings Ltd. operates in the passenger shipping and other forms of passenger transport across North America, the UK, and internationally, with operations divided into River and Ocean segments [4]

Group 1 - Viking Holdings is approaching an early buy point, currently trading at $64.67, up 1.34% with a market cap increase of 18% [1][2] - The stock has rallied above its 50-day moving average following a recent earnings report, indicating positive momentum [1] - Viking Holdings has a Composite Rating of 85 out of 99 and is ranked 103 out of 197 in its industry group, suggesting strong performance relative to peers [1] Group 2 - The overall stock market is experiencing upward movement, with the Dow reaching record highs and tech stocks like Nvidia and Microsoft showing significant gains [4] - Carnival Corporation is noted for rising profit estimates, indicating potential earnings growth in the cruise line sector [4] - Other cruise line stocks, including Royal Caribbean, are also in or near buy zones, reflecting a positive trend in the industry [4]

Core Insights - Carnival has maintained a strong position in the cruise industry with nearly 42% of passenger load and 36% of industry revenue, reporting record bookings and high occupancy rates [3][4] - Viking has launched its IPO and is gaining investor attention due to its unique approach and potential for higher returns, focusing on culturally enriching experiences and smaller ships [2][7] Carnival's Advantages - Carnival's market leadership is underscored by its significant share of passenger load and revenue, alongside a low price-to-earnings (P/E) ratio of 14, making it attractive compared to competitors [3][5] - The company reported occupancy rates of 112% and all-time highs in net income, indicating strong demand despite economic uncertainties [4] Viking's Differentiation - Viking's strategy involves limiting cabins to two passengers, resulting in a 96% occupancy rate, and focusing on all-adult, all-inclusive experiences rather than larger ships [7][9] - The company targets the upper end of the market, which allows it to maintain higher pricing despite accounting for less than 1% of total industry passengers, making it the fifth-largest cruise line by revenue [9] Viking's Financial Performance - Viking's revenue for the first nine months of the year reached over $4.4 billion, a 20% increase year-over-year, with operating income rising 35% [10][11] - The company reported a net income of $848 million, significantly up from $49 million in the previous year, despite facing currency losses [11] Debt and Financial Obligations - Viking's total debt is approximately $5.6 billion, which has increased from $5.2 billion year-over-year, but interest payments have decreased due to refinancing [13][14] - Shipbuilding obligations have risen from $2.8 billion to $4.5 billion, indicating expansion plans to meet growing demand for cruise vacations [15] Investment Considerations - Investors are encouraged to consider Viking stock as a compelling alternative to Carnival, given its focus on higher-income consumers and stronger growth potential [16][17] - Viking's financial position is bolstered by rapid revenue growth and a shift towards profitability, positioning it well for future returns [17]

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1] Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1]

Core Insights - Viking Holdings has been recognized as the leader in the cruise industry by topping the U.S. News & World Report's 2026 Best Cruise Line Rankings, highlighting its excellence and competitive edge [1][5] - Goldman Sachs maintains a Neutral rating on Viking Holdings but has raised the price target from $64 to $66, indicating a positive outlook for the company's future performance [2][5] - The current stock price of Viking Holdings is $61.61, reflecting a slight increase of 0.65% or $0.40, with a market capitalization of approximately $27.3 billion [3][4][5] Market Performance - The stock has experienced fluctuations today, with a low of $61.32 and a high of $63.90, indicating volatility in the market [3] - Over the past year, Viking Holdings has seen a high of $65.37 and a low of $31.79, further reflecting its market volatility [3] - The trading volume for Viking Holdings today is 2,081,966 shares, indicating active investor interest [4]

Core Insights - Viking Holdings Ltd. reported better-than-expected earnings for Q3 2025, with adjusted EPS of $1.20 compared to the $1.19 estimate and revenue of $1.9996 billion, slightly above the consensus of $1.992 billion [1] - Advance bookings for 2025 reached $5,613 million, up 21%, and for 2026, they totaled $4,925 million, up 14% [1] Company Performance - The strong booking position for both 2025 and 2026 indicates robust demand for Viking's destination-focused offerings, as stated by President and CFO Leah Talactac [2] - Following the earnings announcement, Viking Holdings shares increased by 1.7%, trading at $62.25 [2] Analyst Ratings - Goldman Sachs analyst Lizzie Dove maintained a Neutral rating on Viking and raised the price target from $64 to $66 [4] - Wells Fargo analyst Trey Bowers maintained an Equal-Weight rating and increased the price target from $56 to $62 [4]

Core Insights - Viking Holdings (VIK) reported strong third-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate and showing year-over-year improvement [1][8] Financial Performance - Quarterly earnings reached $1.20 per share, surpassing the Zacks Consensus Estimate by $0.01 and improving from the previous year [1] - Total revenues amounted to $1.99 billion, exceeding the Zacks Consensus Estimate by 0.1% and increasing by 19.1% year-over-year [2][8] - Adjusted EBITDA was $703.5 million, reflecting a 26.9% year-over-year growth, driven by increased Capacity Passenger Cruise Days (PCDs), higher occupancy, and higher revenue per PCD [2] - Adjusted gross margin improved by 21.4% compared to the same quarter last year [2][8] Capacity and Occupancy - Capacity PCDs grew by 11% year-over-year due to fleet expansion, which included four additional river vessels and two ocean ships [3] - Occupancy for the third quarter of 2025 was reported at 96% [3] Management Commentary - Torstein Hagen, CEO of Viking, highlighted the achievement of surpassing 100 ships, emphasizing the company's innovation and strong guest loyalty [4] - The company has already sold 70% of its 2026 capacity for core products, indicating strong future demand [4] Operating Expenses - Vessel operating expenses increased by 19.1% year-over-year, with expenses excluding fuel rising by 21.7% due to fleet size growth [4] Cash Position - As of September 30, 2025, VIK had $3.03 billion in cash and cash equivalents, up from $2.6 billion at the end of the previous quarter [5] - The company's net debt decreased to $2.75 billion from $3.22 billion in the prior quarter [5] Industry Comparison - In contrast, Caesars Entertainment, Inc. reported third-quarter results that missed estimates, with both earnings and revenues declining year-over-year [6][7] - Norwegian Cruise Line Holdings Ltd. reported adjusted earnings per share of $1.20, beating estimates, but revenues of $2.94 billion fell short of expectations [10]

Core Insights - Viking Holdings Ltd (VIK) has demonstrated impressive financial performance in Q3 2025, with earnings per share (EPS) and revenue figures consistently exceeding expectations [1][2] Financial Performance - VIK reported an EPS of $1.20, surpassing the estimated $1.19, and showing a significant improvement from $0.89 EPS in the same quarter last year, reflecting a surprise of +0.84% [2][6] - The company achieved revenue of approximately $2 billion for the quarter ending September 2025, marking a 19.1% increase compared to the same period in 2024, exceeding the Zacks Consensus Estimate by 0.05% [3][6] Operational Efficiency - VIK's gross margin rose by 22.9%, while the adjusted gross margin increased by 21.4% year-over-year, indicating improved operational efficiency [3] Financial Ratios - The company's price-to-earnings (P/E) ratio is approximately 33, suggesting a high valuation by investors [4] - VIK's debt-to-equity ratio is notably high at approximately 20.57, indicating significant reliance on debt financing [4] - The current ratio of around 0.64 suggests potential challenges in covering short-term liabilities with short-term assets [4] Valuation Metrics - VIK's price-to-sales ratio is about 4.69, and the enterprise value to sales ratio is around 5.24, reflecting the company's market valuation in relation to its sales [5] - The enterprise value to operating cash flow ratio is approximately 13.48, indicating how many times the operating cash flow can cover the enterprise value [5] - Despite challenges, VIK's earnings yield of about 3.03% highlights its profitability [5]

Business Performance - The company has performed exceptionally well in its wealth management segment, indicating strong business fundamentals [1] - There is a notable conversion of customers from retail to wealth management, particularly in Hong Kong, which is driving growth in wealth revenues [1] Key Drivers - The acquisition of customers and deposits is a significant factor contributing to the structural growth in wealth management [1] - Market share gains are being observed, reflecting the company's competitive positioning in the wealth management sector [1]