Carnival (US:CCL) Forbes·2025-11-25 17:05Core Insights - The article highlights that traditional cash-flow businesses, particularly Carnival (CCL), are becoming attractive as the AI trade shows signs of fatigue and investors reassess valuations [2] - Carnival is positioned as a cyclical company benefiting from increased bookings, improved margins, and a stronger balance sheet, offering tangible fundamentals at a discount [2] Group 1: Stock Performance and Support Levels - CCL stock is currently trading in a support zone between $23.52 and $26.00, where it has historically rebounded, generating an average peak return of 19.6% on three occasions over the last decade [3] - The stock's rebound potential is enhanced by strong bookings, ongoing debt reduction, and favorable analyst ratings ranging from "Strong Buy" to "Moderate Buy" [4] Group 2: Financial Performance - Carnival's Q3 2025 results exceeded expectations, achieving record revenue, net income, and customer deposits, indicating robust demand [4] - The cruise industry anticipates record passenger growth through 2026, with bookings for 2026 already half-filled at elevated prices [4] - CCL has demonstrated a revenue growth of 7.1% over the last twelve months and a 45.9% average growth over the last three years [10] - The company has a free cash flow margin of nearly 11.1% and an operating margin of 16.4% for the last twelve months [10] - CCL stock trades at a price-to-earnings (PE) multiple of 12.3 [10]