Core Viewpoint - Carnival Corporation's stock is expected to continue surprising positively in the short term due to strong financial performance and an upgraded outlook [1]. Financial Performance - The company has demonstrated robust financial results, which contribute to a favorable market perception [1]. Market Outlook - There is an upgraded outlook for Carnival Corporation, indicating potential for growth and positive investor sentiment [1]. Industry Context - The cruise industry is experiencing a positive turn, which may benefit Carnival Corporation and its stock performance [1].

Core Insights - Royal Caribbean has officially welcomed the new ship, Star of the Seas, which is set to debut in August 2025 in Port Canaveral, Florida, marking a significant milestone in family vacation experiences [1][2][3] Group 1: Ship Details and Features - Star of the Seas is part of the Icon Class and represents a new era of family vacations, featuring innovative designs and engineering feats such as the AquaDome and record-breaking waterslides [3][4][6] - The ship will offer over 40 dining, drinking, and entertainment options across eight distinct neighborhoods, enhancing the vacation experience for families [4][5] - Star will be the third ship in Royal Caribbean's fleet powered by liquefied natural gas (LNG), contributing to the company's environmental initiatives aimed at achieving a net-zero cruise ship by 2035 [6] Group 2: Upcoming Developments - Royal Caribbean is expanding its vacation offerings with new destinations, including the Royal Beach Club Paradise Island in December 2025 and additional locations in Cozumel and Mexico by 2027 [7] - The company continues to innovate in the cruise industry, focusing on creating unforgettable experiences for families and vacationers [3][9]

Airline Industry Performance - Delta Air Lines Inc. experienced a 12% surge in stock price after reporting second-quarter results that exceeded both earnings and revenue expectations, indicating a strong demand outlook [1] - American Airlines Group Inc. shares increased by 12.5%, while United Airlines Holdings Inc. saw a 13.5% rise, contributing to a broad rally across the airline sector [2] - The U.S. Global Jets ETF, which tracks airline stocks, rose by 7.2%, marking its best performance since the 90-day tariff pause in April [2] Economic Indicators - The U.S. labor market showed resilience with initial jobless claims dropping to 237,000, surpassing forecasts, although continuing claims rose to 1.965 million, the highest since 2021 [6] Commodity Market Reactions - Copper futures increased by 2.2% to approximately $5.60 per pound, with silver and palladium also seeing gains of 1.6% and 3.6% respectively, driven by expectations of tightening supply [5] - Crude oil prices fell over 2% amid reports that OPEC+ is considering halting planned production increases starting in October, raising concerns about potential oversupply [5] Stock Market Overview - Major indices showed mixed performance, with the Russell 2000 up 0.7%, Dow Jones up 0.6%, and S&P 500 up 0.2%, while Nasdaq 100 slipped by 0.3% [7] - The Vanguard S&P 500 ETF inched up 0.2%, while the SPDR Dow Jones Industrial Average rose by 0.6% [9] Company-Specific Movements - Norwegian Cruise Line Holdings Ltd. rose over 4% after NorthCoast Research raised its price target, reiterating a 'Buy' rating [10] - Freeport-McMoRan Inc. climbed 3.3% as copper prices continued to rise amid supply concerns [10] - Nu Holdings Ltd. dropped 5.1% following the announcement of a 50% tariff on Brazilian imports, leading to a selloff in Brazil-linked assets [10]

For in-depth and deep dive research on the casino and gaming sector, subscribe to The House Edge . New: Free excerpts from our book in progress "The Smartest Ever Guide to Gaming Stocks" - free to existing members and new subscribers.After a brilliant 1Q25 performance, Carnival Corporation & plc (NYSE: CCL ) stock only dribbled up to around $30, from $24. Recall that CCL was disproportionally punished by COVID in 2020, falling from a high of $63 pre-COVID to the low $20s. RecoveryHoward Jay Klein has 30 yea ...

Group 1 - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum characteristics [3][4][5][6][7] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Sales, appealing to value investors [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings and cash flow [5] - The Momentum Score assists investors in capitalizing on price trends, utilizing recent price changes and earnings estimate adjustments [6] Group 3 - The VGM Score combines the three Style Scores to identify stocks with the best overall value, growth, and momentum characteristics, serving as a strong indicator alongside the Zacks Rank [7] - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [8][9] Group 4 - Royal Caribbean Cruises (RCL) is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B, indicating a moderate investment potential [12] - RCL is highlighted as a growth investment opportunity, with a Growth Style Score of B and a projected year-over-year earnings growth of 30.8% for the current fiscal year, supported by upward revisions from analysts [13]

Core Insights - Carnival Corporation & plc (CCL) is focusing on a high-margin, experience-led strategy by investing in exclusive Caribbean destinations to enhance revenue streams [1] - The centerpiece of this strategy is Celebration Key, a 275,000-square-foot lagoon destination set to open in July, which is expected to drive brand engagement and yield premiums [2] - Carnival is also expanding its "Paradise Collection" with enhancements to existing properties to increase guest throughput and revenue per passenger [3] Revenue Growth Strategy - By leveraging unique land-based assets and extending the advanced booking window, the company aims to optimize pricing and enhance consumer conversion [4] - With over 2 million annual visitors expected across its properties, Carnival anticipates a significant impact on yield and per-passenger spending [5] - For fiscal 2025, Carnival expects net yields to be approximately 5.6% higher than 2024 levels [5] Competitive Landscape - Royal Caribbean Cruises Ltd. (RCL) has a destination-first strategy, with over 70% of its Caribbean itineraries including private destinations, expected to rise to 90% by 2027 [6] - Norwegian Cruise Line Holdings Ltd. (NCLH) is enhancing its private island, Great Stirrup Cay, to double its capacity by 2026, supporting stronger onboard monetization [7] Financial Performance - CCL shares have increased by 49.5% in the past three months, outperforming the industry's growth of 26.5% [8] - The company is optimistic about the Celebration Key opening, supported by strong early bookings, and expects FY25 net yields to rise by 5.6% over FY24 [9] - CCL trades at a forward price-to-earnings ratio of 13.82X, significantly below the industry average of 19.68X [10] Earnings Estimates - The Zacks Consensus Estimate for CCL's fiscal 2025 and 2026 earnings indicates a year-over-year increase of 38% and 13.4%, respectively [11]

Core Insights - Celebrity Xcel will introduce seven new elevated experiences designed to enhance guest enjoyment and create lasting memories [1][6] - The ship will feature innovative spaces such as the Celebrity Pool Club, Attic at The Club, and The Spa, each offering unique activities and relaxation options [1][3][4] Group 1: New Experiences - The Celebrity Pool Club will provide an all-day, all-night poolside experience with amenities like poolside chilled towels and private cabanas [1] - The Poolest Day EverSM will transform the pool area on sea days into a vibrant event with live music, games, and exclusive drinks [2] - Attic at The Club will be a 24/7 adults-oriented lounge featuring retro games and private event spaces for group activities [3] Group 2: Spa and Wellness - The Spa on Celebrity Xcel will include the first-ever Hydra RoomSM, offering a water-focused wellness experience with therapeutic benefits [4] - The new outdoor Vitamin D DeckSM will provide guests with a relaxing space to enjoy ocean views and complimentary beverages [4] Group 3: Retail and Community Engagement - The Celebrity Flagship store will serve as an interactive retail experience, allowing guests to engage with the brand and create personalized mementos [5] - The Xcel 'Dream Makers' program invites guests to participate in shaping new onboard experiences, influencing culinary and entertainment options [7] Group 4: Itineraries and Future Plans - Celebrity Xcel will begin its inaugural season from Fort Lauderdale in November, offering seven-night itineraries to various Caribbean destinations [8] - In Summer 2026, the ship will embark on its inaugural European season with journeys from Barcelona and Athens, including overnight stays in Madeira, Portugal [8]

Company Overview - Carnival (CCL) currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Price Performance - Over the past week, CCL shares have increased by 14.68%, outperforming the Zacks Leisure and Recreation Services industry, which rose by 2.69% [5] - In a longer time frame, CCL's shares have risen by 23.39% over the past month, compared to the industry's 5.85% [5] - Over the last quarter, CCL shares have surged by 69.84%, and over the past year, they have increased by 74.08%, while the S&P 500 has only moved 24.12% and 14.76%, respectively [6] Trading Volume - CCL's average 20-day trading volume is 27,659,148 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 7 earnings estimates for CCL have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $1.85 to $1.96 [9] - For the next fiscal year, 6 estimates have moved higher, with only 1 downward revision during the same period [9] Conclusion - Considering the positive price momentum, trading volume, and favorable earnings outlook, CCL is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Core Viewpoint - The average brokerage recommendation (ABR) for Norwegian Cruise Line (NCLH) is 1.64, indicating a general suggestion to buy the stock, but reliance solely on this metric may not be advisable due to potential biases in brokerage recommendations [2][5][10]. Group 1: Brokerage Recommendations - NCLH has an ABR of 1.64, which is between Strong Buy and Buy, based on recommendations from 22 brokerage firms, with 15 of those being Strong Buy, representing 68.2% of all recommendations [2]. - Despite the positive ABR, studies suggest that brokerage recommendations often do not effectively guide investors toward stocks with the highest potential for price appreciation [5][10]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [6][10]. Group 2: Zacks Rank vs. ABR - The Zacks Rank, which ranges from 1 (Strong Buy) to 5 (Strong Sell), is a quantitative model based on earnings estimate revisions and is considered a more reliable indicator of near-term stock performance compared to ABR [8][9]. - The Zacks Rank is updated more frequently and reflects changes in earnings estimates promptly, making it a timely tool for predicting future price movements [13]. - For NCLH, the Zacks Consensus Estimate for the current year has decreased by 0.1% to $2.03, indicating growing pessimism among analysts regarding the company's earnings prospects [14]. Group 3: Current Investment Outlook - The recent decline in the consensus estimate and other related factors have resulted in a Zacks Rank of 5 (Strong Sell) for NCLH, suggesting caution despite the Buy-equivalent ABR [15].

Core Viewpoint - The consumer's determination to travel is driving a significant increase in global air passenger traffic, with a 15% year-over-year growth in the first half of 2025, particularly strong in Asia-Pacific and Europe [1][2]. Group 1: Travel Market Dynamics - Despite a nearly 10% decline in the U.S. dollar, which typically increases the cost of international travel, strong wage growth in the U.S. is offsetting this effect, leading to robust demand for travel [2]. - The combination of increased income and pent-up demand for previously inaccessible international destinations is fueling the travel market [2]. Group 2: Company-Specific Insights Booking Holdings - Booking Holdings Inc. (NASDAQ: BKNG) is trading at over $5,600 per share, with a 12-month stock price forecast of $5,388.37, indicating a potential downside of 5.84% [4]. - The company reported earnings exceeding expectations by nearly 30% in its most recent quarter, showcasing its pricing power and impressive 86% gross margins, driven by artificial intelligence [5]. - Booking's strongest periods are typically in the second and third quarters, supported by demand for travel to Asia Pacific and Europe [5]. Marriott International - Marriott International (NYSE: MAR) has a current stock price of $280.08, with a 12-month forecast of $275.90, suggesting a downside of 1.49% [7]. - The company reported a global RevPAR increase of approximately 4% in Q1 2025, with international RevPAR up more than 6%, particularly strong in Asia Pacific [8]. - Marriott's diverse brand portfolio and expansion into luxury and upscale properties allow it to target less price-sensitive consumers [9]. Royal Caribbean - Royal Caribbean Cruises Ltd. (NYSE: RCL) has a current stock price of $334.10, with a 12-month forecast of $280.40, indicating a downside of 16.07% [11]. - The cruise industry is experiencing a recovery, with Royal Caribbean's stock up over 106% in the last 12 months and more than 40% in 2025 [12]. - The company has significantly reduced its debt, refinancing approximately $3 billion in short-term debt and repaying about $2.1 billion in principal, resulting in a debt-to-equity ratio of 2.21, which is more than 60% lower than its 2022 peak [13].