Royal Caribbean Cruises Ltd. (RCL) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, RCL's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross."There's a reason traders love a golden cross -- it's a technical chart pattern that can indicate a bullish breakout is on the horizon. This kind of crossover is formed when a stock's short-term moving average breaks above a longer-term moving a ...

Core Viewpoint - Carnival stock is experiencing selling pressure primarily due to rising oil prices, which significantly impact the company's profit margins and earnings potential in the upcoming quarters [2][4]. Group 1: Oil Price Impact - Energy costs are one of Carnival's largest variable expenses, and sustained increases in crude oil prices directly squeeze profit margins [2]. - Benchmark Brent crude has risen above $71 per barrel, while WTI is in the mid-$60s, leading to increased operational costs for Carnival [3]. - Higher fuel bills compress operating margins and reduce free cash flow, which is critical for servicing Carnival's substantial debt [4]. Group 2: Market Sentiment and Stock Performance - Investors are sensitive to macroeconomic headwinds and discretionary spending risks, leading to lower earnings multiples for travel-related stocks, which can exacerbate the impact of oil price shocks on Carnival's share price [5]. - Carnival stock is currently trading 2.3% above its 20-day simple moving average and 10.1% above its 100-day simple moving average, indicating longer-term strength [6]. - Over the past 12 months, shares have increased by 22.17% and are near their 52-week highs, with a neutral RSI of 56.82 and a bullish MACD signal [6][7]. Group 3: Upcoming Earnings and Analyst Consensus - Carnival Corporation is scheduled to release its next financial update on March 20 [8]. - The stock carries a Buy Rating with an average price target of $35.95, with recent analyst actions indicating a range of price targets from $34.00 to $38.00 [9][10]. - EPS estimates have increased to 18 cents from 13 cents, and revenue estimates have risen to $6.12 billion from $5.81 billion [9].

Norwegian Cruise Line (NCLH) shares pushed notably higher on Tuesday after Elliott Investment Management announced a more than 10% stake in the cruise line. The activist investor identified years of strategic misjudgments, inconsistent execution, inadequate cost discipline, and repeated guidance failures as primary impediments to value creation. More News from Barchart Despite today’s surge, Norwegian stock is down nearly 9% versus its 52-week high. www.barchart.com Should You Invest in Norwegian Sto ...

Core Insights - Zacks Premium offers tools for investors to enhance their stock market strategies and confidence, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum characteristics, aiding investors in selecting securities likely to outperform the market in the short term [2][3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales, helping value investors find attractive investment opportunities [3] Growth Score - The Growth Style Score evaluates stocks based on projected and historical earnings, sales, and cash flow, targeting companies with sustainable growth potential [4] Momentum Score - The Momentum Style Score assesses stocks based on price trends and earnings estimate changes, guiding momentum investors on optimal times to invest in high-performing stocks [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive rating that highlights stocks with the best overall investment characteristics [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.86% since 1988, significantly outperforming the S&P 500 [7][9] Stock Example: Royal Caribbean (RCL) - Royal Caribbean Cruises, a cruise company with a 3 (Hold) Zacks Rank and a VGM Score of A, operates three global brands and has a joint venture with TUI AG [11] - RCL's shares have increased by 15.8% over the past four weeks, and its earnings estimate for fiscal 2026 has risen by $0.20 to $18.09 per share, with an average earnings surprise of +3.7% [12]

Core Insights - Carnival Corporation & plc (CCL) anticipates a measurable earnings boost for fiscal 2026, primarily driven by fuel prices and currency fluctuations, contributing approximately $0.20 per share [1][8] Earnings Expectations - The company projects adjusted net income of around $3.45 billion for fiscal 2026, reflecting a year-over-year increase of over 12%, or $0.23 per share [3] - Adjusted EBITDA is expected to reach approximately $7.6 billion, up from $7.2 billion in fiscal 2025 [3] Cost Pressures - Cruise costs, excluding fuel, are expected to rise by approximately 3.25% in fiscal 2026 [4] - Regulatory expenses related to emissions allowances and Pillar 2 taxes are projected to reduce earnings by about $0.11 per share [4] Fuel and Currency Impact - Fuel prices are expected to provide a favorable impact of $0.17 per share, while foreign exchange rate changes are anticipated to add another $0.03 per share in fiscal 2026 [2][8] - The combined impact of fuel and foreign exchange is integrated into the broader earnings outlook, with adjusted earnings per share projected at approximately $2.48 for fiscal 2026, compared to $2.25 in fiscal 2025 [5] Stock Performance and Valuation - CCL shares have increased by 25.2% over the past three months, outperforming the industry growth of 10.9% [6] - The stock is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 12.24, significantly below the industry average of 16.65 [9] Analyst Confidence - The Zacks Consensus Estimate for CCL's fiscal 2026 earnings per share has been revised upward from $2.40 to $2.54 over the past 60 days, indicating strong analyst confidence [11]

Core Viewpoint - Carnival Corporation & plc shares experienced a slight decline after a significant increase of over 8% the previous day, influenced by comments from Royal Caribbean Cruises Ltd. regarding industry strength, indicating potential volatility in stock performance [1] Price Dynamics - Financial markets often exhibit psychological importance at round price levels, such as $20 or $100, which can influence trading behavior [2] - Carnival faced resistance at $32.50 in August, leading to a price reversal, although the reasons for this resistance remain unclear [2][3] - The stock encountered resistance again at $32.50 in September, as previous buyers at this level sought to exit at breakeven, reinforcing the significance of this price point [3] Trading Implications - Traders are closely monitoring Carnival's performance as it approaches the $32.50 resistance level, noting that previous attempts to breach this level resulted in downward pressure from sellers [4] - A successful breakout above $32.50 could signal bullish momentum for Carnival, indicating that sellers who previously created resistance may have exited the market [4] - This breakout could lead to increased competition among buyers, potentially driving the stock price higher [5]

Core Viewpoint - Carnival (CCL) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Carnival suggest an improvement in the company's underlying business, likely leading to increased stock prices as investors respond positively [5][10]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - Carnival's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Earnings Estimate Revisions for Carnival - For the fiscal year ending November 2026, Carnival is expected to earn $2.52 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 6% over the past three months [8].

Company Overview - Norwegian Cruise Line Holdings Ltd. (NCLH) is a cruise company based in Miami, Florida, founded in 1966, with a market capitalization of $10 billion [1] Earnings Expectations - Analysts expect NCLH to report a profit of $0.21 per share for Q4 2025, unchanged from the same quarter last year [2] - For fiscal 2025, the expected EPS is $1.92, reflecting a nearly 17.1% increase from $1.64 in fiscal 2024, with a projected growth of 27.6% YoY to $2.45 in fiscal 2026 [3] Stock Performance - NCLH shares have declined by 25% over the past 52 weeks, underperforming the S&P 500 Index, which rose by 13.3%, and the State Street Consumer Discretionary Select Sector SPDR ETF, which returned 3.9% during the same period [4] Recent Earnings Report - On November 4, 2025, NCLH stock dropped by 15.3% following mixed Q3 2025 earnings results, reporting revenue of $2.94 billion, which fell short of forecasts, although adjusted EPS was $1.20, exceeding Wall Street estimates [5] Analyst Ratings - The consensus opinion among analysts is a "Moderate Buy," with 13 out of 23 analysts recommending a "Strong Buy" and 10 suggesting a "Hold." The average analyst price target is $27.90, indicating a potential upside of 37% from current levels [6]

Core Viewpoint - Carnival Corp. has shown significant recovery and growth in the cruise industry, with a share price increase of 180% over the past 36 months, indicating strong financial performance and investor confidence [1][3]. Financial Performance - In fiscal 2021, Carnival experienced a 66% year-over-year revenue decrease and a net loss of $9.5 billion, but has since rebounded with record revenue of $26.6 billion and adjusted net income of $3.1 billion in the last fiscal year ending November 30, 2025 [5]. - The company has improved its balance sheet, reducing its debt burden from a peak of $36.6 billion to $26.6 billion, which is 69% of its total market cap [9][10]. Market Position and Valuation - Carnival shares are currently trading at a price-to-earnings (P/E) ratio of 14.7, significantly lower than the S&P 500's 25.7, suggesting potential for a 37% upside if the valuation gap narrows [4]. - The stock is currently priced around $29, with a target of $40 by 2026 requiring a 38% increase [2][3]. Demand and Consumer Trends - Carnival ended the fourth quarter with $7.2 billion in customer deposits, indicating strong demand and visibility into future trends [7]. - The company is expanding its offerings, including new private destinations like Celebration Key in Grand Bahama and Ensenada Bay Village in Mexico, enhancing customer experience [8]. Economic Outlook - The macroeconomic environment appears favorable for travel spending, with the Federal Reserve reducing interest rates and implementing quantitative easing, which could support Carnival's stock performance [12].

Core Viewpoint - The article compares Carnival and Viking Holdings as investment options in the cruise industry, highlighting their market positions, financial performance, and growth potential. Carnival - Carnival holds a 42% market share in the cruise industry, making it a generalist brand catering to a broad audience, which includes budget-friendly options [3] - The company faced significant challenges during the pandemic, leading to heavy borrowing and a slow recovery to pre-pandemic revenue levels, but has since seen a resurgence in demand with occupancy rates at 105% [4] - In fiscal 2025, Carnival generated $2.6 billion in free cash flow and reduced its total debt by approximately $800 million, although its total debt remains high at $25.8 billion [5] - The stock has increased by 30% over the past year and is currently valued at a P/E ratio of 16, which is lower than its competitors, suggesting potential for further growth [7] Viking Holdings - Viking has a much smaller market share of 0.8% but claims 4.2% of industry revenue, focusing on luxury experiences and educational offerings [2] - The company has a total debt of around $5.4 billion, which is considered manageable given its book value of the same amount [11] - Viking generated $674 million in free cash flow over the last year, although this has decreased as the company invests in new ships to meet high demand [12] - The stock has appreciated by 70% over the past year, with a higher P/E ratio of 35, reflecting its premium positioning and recession-resistant business model [13] Investment Considerations - Investors seeking safety may prefer Carnival due to its low P/E ratio and significant market share, alongside strong booking trends and effective debt management [14] - Conversely, those willing to take on more risk might find Viking's growth potential appealing, as its business model is less susceptible to economic downturns and its smaller ships allow access to more destinations [15]