Carnival Corporation & plc (NYSE:CCL) is one of the stocks that was on Jim Cramer’s radar. Cramer explained why the stock is “exciting to people,” as he said: “The AI theme lost its luster, didn’t it? Buyers moved on to other, more exciting areas. That consumer’s resurgence out of nowhere, that’s an exciting story. For example, it’s ignited retail, anything connected to discretionary spending, and that’s what drove, say, the stock of Carnival, almost 10 points higher today on greater numbers that it relea ...

Core Viewpoint - Royal Caribbean Cruises Ltd (NYSE:RCL) stock is experiencing a pullback to a potential support level while maintaining a long-term uptrend, with significant historical price points influencing current trading behavior [1] Group 1: Stock Performance - RCL is outperforming the S&P 500 Index (SPX) in 2025 with a 24% lead, despite a disappointing fiscal fourth-quarter profit outlook that led to several earnings revisions lower [2] - The stock has seen a post-earnings pullback from the call-heavy 320-strike to the 270-strike, where puts are now dominating [2] Group 2: Technical Indicators - The stock is near its January closing high at $274, which aligns with major peaks from 2018 and 2020, and is also supported by a rising 12-month moving average that has provided buying opportunities since 2023 [1] - Implied volatility (IV) on January options matches the 63-day historical volatility (HV), indicating stability in market expectations [3] Group 3: Short Selling and Options - It would take short sellers more than five sessions to cover their bearish bets, potentially providing a floor for RCL as it approaches long-term support [3] - A recommended January 16, 2026 call option has a leverage ratio of 6.30, suggesting that a 16% rise in the underlying equity would double the option's value [3]

Core Insights - Hyatt Hotels Corporation reported third-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate, while the top line grew year-over-year and the bottom line declined [1][4]. Financial Performance - Adjusted loss per share was 30 cents, missing the consensus estimate of 49 cents, compared to an adjusted earnings per share of 94 cents in the same quarter last year [4][10]. - Revenues reached $1.78 billion, missing the consensus mark of $1.83 billion, but increased by 9.6% year-over-year [4][10]. - Owned and Leased revenues were $429 million, up from $287 million in the prior-year quarter, while Distribution revenues declined by 13.1% year-over-year to $192 million [5]. Revenue Breakdown - Gross fees increased by 5.9% year-over-year to $283 million, with base management fees rising by 10%, incentive management fees up by 2%, and franchise and other fees advancing by 4% [6]. - Net fees for the quarter were $249 million, compared to $241 million in the prior-year quarter [7]. Operating Highlights - Adjusted EBITDA was $291 million, up 5.6% year-over-year, and increased by 10.1% after adjusting for assets sold in 2024 [8]. - Adjusted EBITDA in the Management and Franchising segment was $226 million, compared to $221 million in the prior-year quarter [9]. Balance Sheet - As of September 30, 2025, cash and cash equivalents were $749 million, down from $912 million in the previous quarter, with total liquidity at $2.2 billion [11]. - Total debt remained flat at $6 billion [11]. Business Updates - In Q3, 5,163 rooms were added to Hyatt's system, with a pipeline of approximately 141,000 rooms, reflecting a 4.4% year-over-year increase [12]. - The company anticipates net rooms growth of 6.3% to 7% year-over-year, excluding Playa [13]. 2025 Outlook - Expected adjusted general and administrative expenses for 2025 are between $446 million and $452 million, with capital expenditures anticipated at about $225 million [13]. - System-wide RevPAR is projected to rise by 2-2.5% from the 2024 level, with adjusted EBITDA expected to be in the range of $1.09-$1.11 billion [14].

Core Viewpoint - Carnival has made a significant recovery post-pandemic, showing strong demand and record operating profits, but recent stock price declines raise questions about future performance [1][2]. Company Overview - Carnival is the largest cruise operator globally, with a fleet of 90 ships across various brands, including Princess and Holland [2]. - The company is experiencing demand that exceeds its current capacity, prompting orders for additional ships to accommodate travelers [2]. Demand Generation - Carnival is actively enhancing demand through new features and exclusive destinations, such as the recently opened Celebration Key in the Caribbean [3]. - Management anticipates high visitor traffic at Celebration Key, with two ships in port 85% of the time [3]. Capacity Expansion - The company is strategically relocating ships to high-demand areas and has plans to increase capacity for the 2027 and 2028 sailing seasons [4]. - New booking options have been introduced in South Florida and Texas, along with new home ports in Norfolk, Virginia, and Baltimore, Maryland [4]. Financial Performance - Carnival reported its highest-ever quarterly adjusted net income of $2 billion for the fiscal third quarter ending August 31, exceeding guidance across all metrics [6]. - The company has raised its full-year guidance multiple times this year, indicating strong financial momentum [6]. Stock Market Reaction - Despite strong earnings, Carnival's stock fell 7% following the report, attributed to concerns over its remaining $26.5 billion debt and a modest 4% year-over-year revenue increase [7][8]. - The market reaction may also be linked to rising crude oil prices and plans to convert some debt into stock, which could dilute existing shares [8]. Analyst Sentiment - Wall Street analysts are optimistic, with 73% recommending Carnival as a buy, projecting an average price target increase of 27% over the next 12 to 18 months [9]. - Analysts suggest that long-term investors may find this a favorable buying opportunity despite potential short-term volatility [10][11].

Market Overview - The market has increased by only 3% so far this year, recovering from earlier declines, indicating a potentially favorable buying opportunity for investors [1] Realty Income - Realty Income is a major real estate investment trust (REIT) that pays monthly dividends and has a strong history of increasing payouts, having distributed dividends for 660 consecutive months [3][5] - The REIT owns 15,600 properties, with 80% leased to retailers, including essential businesses like Walmart and Lowe's, providing stability even in tough economic conditions [4] - The current dividend yield is 5.5%, and despite a year-to-date increase, the stock price has declined over the past three years due to higher interest rates, making it an attractive buy [5] MercadoLibre - MercadoLibre operates in 18 Latin American countries and has reported significant growth, with a 40% increase in gross merchandise volume year-over-year on a currency-neutral basis [6][7] - The company has seen a 25% increase in unique active buyers and a 72% increase in total payments volume year-over-year, indicating strong demand for its services [9] - Total company sales rose by 64% in the first quarter, with an operating income of $763 million at a 12.9% margin, showcasing its profitability [9][10] Dutch Bros - Dutch Bros has rapidly expanded its coffee shop chain, recently opening its 1,000th store and aiming to double its footprint in the next five years [11] - Same-store sales increased by 4.7% year-over-year, contributing to a 29% revenue growth, with net income rising by 39% in the first quarter [12] - The stock is currently trading at a high valuation of 88 times next year's expected earnings, reflecting strong growth potential [13] Carnival - Carnival is recovering from pandemic-related challenges, with a 7.4% year-over-year revenue increase to $5.8 billion in its fiscal 2025 first quarter [16] - The company is experiencing record-high demand for cruises, with bookings for fiscal 2026 at unprecedented levels and strong revenue from preboarding sales [16][17] - Carnival's stock is trading at a low price-to-sales ratio of 1.2, and as the company continues to pay down its debt, the stock is expected to rise [18] On Holding - On Holding is gaining traction in the activewear and athletic footwear market, with a 43% year-over-year sales increase in the first quarter [19][20] - The company has a gross margin of 59.9%, indicating strong profitability, and is expanding into new markets [20] - Despite current market concerns, On Holding's long-term outlook remains strong, making it a favorable investment opportunity [22]