Carnival Stock Is Crushing the Market -- Time To Buy?

Group 1: Industry Overview - Carnival Corp. is the industry leader, accounting for 42% of the cruise industry's passenger count through its multiple brands [2] - The cruise industry has seen a dramatic recovery post-COVID-19, with Carnival's ships now operating at full capacity and demand prompting the construction of additional ships [2][4] Group 2: Financial Performance - For the first half of fiscal 2025, Carnival's revenue increased by 9% year over year to $12 billion, while cost and expense growth was limited to 3% [5] - The company reported a net income of $486 million for the first two quarters of 2025, a significant improvement from a loss of $123 million in the same period the previous year [5] - Despite a $718 million interest expense due to pandemic-related debt, Carnival has managed to pay off $2 billion in debt over the last year [6][7] Group 3: Future Prospects - Bookings for 2026 are at record levels, indicating strong demand without the need for heavy discounting, which supports revenue growth [4][11] - Carnival plans to launch new ships, including the Carnival Festivale in 2027 and the Carnival Tropicale in 2028, which will further expand its capacity [4] - The stock trades at a P/E ratio of 17, making it less expensive compared to competitors, suggesting potential for continued stock price appreciation [8][12]