Carnival (US:CCL) ZACKS·2025-12-30 16:30Core Insights - Carnival Corporation & plc (CCL) has demonstrated strong forward booking visibility for fiscal 2026, with approximately two-thirds of bookings already secured at historically high prices, indicating robust demand despite macroeconomic uncertainties [1][3][9] Booking and Demand - Customer deposits for CCL increased by 7% year over year, reaching an all-time high in Q4 of fiscal 2025, which serves as a strong demand indicator and enhances cash flow visibility [2][9] - The company has experienced record booking volumes for 2026 and 2027 over the past three months, extending visibility beyond the near term [1] Revenue Management - CCL has maintained disciplined revenue management and price integrity, allowing for yield growth without aggressive discounting, even as industry capacity expands [3] - Close-in demand remains strong, with higher ticket pricing and increased onboard spending contributing to improved revenue generation visibility [3][9] Competitive Positioning - Compared to peers, CCL's forward booking profile is notable for its depth and duration, suggesting a strong foundation heading into 2026 [6] - Royal Caribbean and Norwegian Cruise Line also report strong demand, but CCL's multi-year booking visibility and elevated customer deposits provide a competitive edge [4][5][6] Stock Performance and Valuation - CCL shares have increased by 8.3% over the past three months, outperforming the industry average rise of 1% [7] - The stock trades at a forward price-to-earnings ratio of 12.37, significantly lower than the industry's average of 17.31, indicating potential undervaluation [11] - The Zacks Consensus Estimate for CCL's fiscal 2026 earnings suggests a year-over-year increase of 9.3%, with EPS estimates having risen in the past 30 days [14]