Carnival Shares Surge As Royal Caribbean's 2026 Outlook Ignites Cruise Sector

Carnival Corp (NYSE:CCL) shares are surging on Monday following positive sentiment in the cruise sector after Royal Caribbean Cruises Ltd (NYSE:RCL) last week reported strong fourth-quarter earnings. Here’s what investors need to know.

• Carnival shares are powering higher. What’s fueling CCL momentum?

Is Consumer Demand For Cruises Rebounding?

Royal Caribbean last week reported adjusted earnings of $2.80 per share, meeting Street expectations, and showcased robust demand for cruises with a net yield growth of 3.1%. The company also guided fiscal 2026 adjusted earnings between $17.70 and $18.10 per share, exceeding analyst expectations of $17.66.

The positive results from Royal Caribbean have created a ripple effect in the cruise industry, as management emphasized that “momentum is further accelerating into 2026,” indicating strong consumer interest in vacation experiences. This optimism is likely contributing to Carnival’s upward momentum Monday morning.

Carnival’s Resilience: A Bullish Trend Unveiled

Carnival is currently trading 6.9% above its 20-day simple moving average (SMA) and 11.8% above its 100-day SMA, demonstrating longer-term strength. Shares have increased 19.09% over the past 12 months and are positioned closer to their 52-week highs than lows, suggesting a bullish trend.

The RSI is at 53.24, which is considered neutral territory, indicating that the stock is neither overbought nor oversold. Meanwhile, MACD is below its signal line, indicating bearish pressure on the stock.

The combination of neutral RSI and bearish MACD suggests mixed momentum for Carnival.

• Key Resistance: $33.00
• Key Support: $28.00

Carnival’s Business Model

Carnival is the largest global cruise company, with more than 90 ships in service. Its portfolio of brands includes Carnival Cruise Lines, Holland America, Princess Cruises, and Seabourn in North America; P&O Cruises and Cunard Line in the United Kingdom; Aida in Germany; Costa Cruises in Southern Europe.

The firm recently folded its P&O Australia brand into Carnival and owns Holland America Princess Alaska Tours in Alaska and the Canadian Yukon. Carnival’s brands attracted nearly 14 million guests in 2025, highlighting its significant presence in the cruise industry.

CCL Earnings Preview

Investors are looking ahead to the next earnings report on Mar. 20.

• EPS Estimate: $0.18 (Up from $0.13 YoY)
• Revenue Estimate: $6.12 billion (Up from $5.81 billion YoY)
• Valuation: P/E of 14.9x (Indicates value opportunity)

Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $35.95. Recent analyst moves include:

• Truist Securities: Hold (Raises Target to $34.00) (Jan. 22)
• TD Cowen: Buy (Raises Target to $38.00) (Jan. 13)
• UBS: Buy (Raises Target to $38.00) (Jan. 12)

Valuation Insight: While the stock trades at a value P/E multiple, the strong consensus and 38% expected earnings growth suggest analysts view this growth as justification for the 12% upside to analyst targets.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for Carnival, highlighting its strengths and weaknesses compared to the broader market:

• Value Rank: 75.67 — The stock is considered a good value relative to its peers.
• Growth Rank: 86.35 — Indicates strong growth potential.
• Momentum Rank: 44.43 — The stock is underperforming in momentum compared to the broader market.

The Verdict: Carnival’s Benzinga Edge signal reveals a mixed outlook. While the strong Growth (86.35) and Value (75.67) scores indicate potential, the Momentum (44.43) score suggests that the stock is currently underperforming relative to the market.

Top ETF Exposure

• Invesco S&P 500 GARP ETF (NYSE:SPGP): 2.27% Weight
• Castellan Targeted Equity ETF (NASDAQ:CTEF): 4.31% Weight
• SPDR Global Dow ETF (based on The Global Dow) (NYSE:DGT): 1.01% Weight

Significance: Because CCL carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

CCL Shares Soar Monday

CCL Price Action: Carnival shares were up 7.26% at $32.20 at the time of publication on Monday, according to Benzinga Pro data.

Image: Courtesy of Carnival