Buy Carnival (CCL) Stock Near 52-Week Lows as Q3 Earnings Approach?

Carnival Corporation CCL), the world’s largest cruise company, is set to report fiscal third-quarter results on Tuesday, Sept. 29, with shares hovering near 52-week lows heading into the closely watched report.

Cruise stocks have faced considerable pressure this year, with major rivals Royal Caribbean RCL) and Norwegian Cruise Line Holdings NCLH) also experiencing sizable pullbacks amid higher fuel costs, geopolitical disruptions, and concerns surrounding travel demand.

Still, Carnival’s steep decline and discounted valuation may have investors wondering whether CCL stock is worth buying ahead of earnings.

Carnival’s Q3 Expectations

The Zacks Consensus Estimate calls for Carnival to post Q3 EPS of $1.36, down roughly 5% year over year amid higher costs and Middle East-related disruptions to European and Mediterranean itineraries, despite quarterly revenue being projected to rise over 2% to $8.36 billion.

Encouragingly, Carnival has exceeded earnings expectations for 15 consecutive quarters, posting an average EPS surprise of 18.15% in its last four quarterly reports. The company has exceeded top-line estimates in three of the last four quarters, with an average sales surprise of 0.45%.

Investors will be watching whether resilient demand, pricing, and onboard spending can offset higher fuel and travel-related costs.

CCL Valuation Comparison

At current levels of around $22 a share, CCL trades at 10X forward earnings. This is roughly on par with Norwegian Cruise Line and slightly below Royal Caribbean’s 13X and their Zacks Leisure and Recreation Services Industry average of 17X.

That discount may reflect Carnival’s greater exposure to near-term cost pressures and a softer earnings outlook. Royal Caribbean, for comparison, is currently expected to post stronger earnings growth in 2026, while Carnival’s full-year EPS is projected to be down 2% to $2.20 per share.

Bottom Line

Carnival’s depressed share price and discounted valuation make CCL increasingly interesting near 52-week lows, particularly if Tuesday’s results show that demand remains strong despite higher costs.

However, with Q3 earnings expected to decline amid uncertainty around fuel costs and travel disruptions in Europe and Mediterranean markets, investors may want to see the upcoming results before aggressively buying the dip

For now, Carnival stock lands a Zacks Rank #3 (Hold), suggesting its valuation is attractive but that stronger earnings-estimate momentum could be needed to support a more convincing rebound.

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This article originally published on Zacks Investment Research (zacks.com).

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