Up Over 50% in 12 Months, Is Carnival Corp Still a Good Buy Right Now?

Core Viewpoint - Carnival Corporation has demonstrated strong financial performance, achieving record revenues and profits, indicating robust demand for cruises despite concerns over high debt levels and economic uncertainty [2][3][5]. Financial Performance - Carnival reported third-quarter revenue of $8.2 billion, a 3% year-over-year increase, marking the 10th consecutive quarter of record revenue [2]. - The company achieved an all-time high profit of $1.9 billion during the same period [2]. - Carnival has over $25 billion in long-term debt but has refinanced over $11 billion of it this year, benefiting from lower interest rates [3]. Stock Valuation - The stock is currently trading at levels not seen since 2021, yet it remains significantly below pre-pandemic highs, which were often above $50 [4]. - The price-to-earnings ratio stands at 15, dropping to 12 based on forward earnings projections, suggesting the stock is modestly priced relative to profitability [5]. Demand Outlook - Nearly half of Carnival's 2026 bookings are already secured, reflecting strong ongoing demand for cruises [6]. - Cruises are perceived as budget-friendly travel options, which may sustain demand even amid economic challenges [6]. Investment Perspective - Despite the high debt load, Carnival's consistent profitability and record performance suggest a positive trajectory for the company [7]. - The stock is viewed as less risky than in previous years, with attractive pricing potentially supporting continued demand [8]. - The combination of low valuation and improved financial performance makes Carnival a compelling investment opportunity [8].