Core Viewpoint - Royal Caribbean Cruises Ltd. (NYSE:RCL) is recognized as one of the best consumer cyclical stocks, with a strong position in the cruise industry and a wide range of travel destinations [1] Analyst Recommendations - As of November 28th, 16 out of 27 analysts recommend buying RCL shares, with 6 holding, 4 strongly buying, and 1 selling [2] - The average target share price for RCL is set at $336.08 [2] Recent Analyst Commentary - Analysts from Bernstein noted a softening in cruise ship prices in November compared to October, attributing this to higher supply, with RCL's group-wide prices down by 5% year-over-year [3] - Bernstein maintained an Outperform rating with a price target of $360 for RCL [3] - Wells Fargo initiated coverage with an Outperform rating and a price target of $320, highlighting RCL as a "Top Idea" due to its cost controls and projected earnings multiple of 17x for 2027 [3] Supply Dynamics - Bernstein's analysis pointed to oversupply in the Caribbean region as a factor for price weakness, which RCL's CEO acknowledged during a Q3 earnings call, stating that the increase in supply is manageable and that RCL's differentiated assets help maintain demand [4]

Core Insights - Carnival has experienced a significant recovery in business performance following the pandemic, but challenges are anticipated in 2026 as growth may slow down [1][12] Group 1: Company Overview - Carnival operates nine branded cruise lines and is one of the largest cruise ship owners and operators globally, generating revenue primarily from passenger fares and onboard spending [2] - The cruise ships function as floating resorts, where passengers pay for accommodations and additional services, with some food and entertainment included in the cruise cost [4] Group 2: Recent Performance - The company faced zero revenue during the early stages of the COVID-19 pandemic, but has since seen impressive recovery, aided by inflation making cruises appear more affordable compared to other vacation options [5][7] - Carnival's revenues and earnings have rebounded, with record revenue levels reported in the first quarter of 2025, although year-over-year growth is slowing compared to previous years [7][9] Group 3: Future Outlook - While 2025 is expected to be a decent year due to strong bookings, two main issues are likely to impact 2026: the rebound from zero revenue has largely played out, and the company has added many new ships leading up to 2024, with fewer new ships expected between 2025 and 2028 [8][10] - Price increases for cruises and onboard spending may improve revenue but could deter some customers [10] - Carnival is focusing on debt reduction after taking on significant debt post-pandemic, which should improve its financial position as new ship acquisitions slow down [11]