Carnival Corporation & plc (CCL): A Bull Case Theory

We came across a bullish thesis on Carnival Corporation & plc on Stock Region Research’s Substack by Stock Region. In this article, we will summarize the bull’s thesis on CCL. Carnival Corporation & plc's share was trading at $25.48 as of June 25^th. CCL’s trailing and forward P/E ratios were 13.34 and 13.76, respectively, according to Yahoo Finance.

Carnival Corporation (CCL) is set to report its Q2 2025 earnings today, and expectations are running high. Analysts project a 7.4% year-over-year revenue increase to $6.21 billion, driven by strong consumer demand for experiences and higher onboard spending. Even more striking is the estimated EPS jump from $0.11 to $0.25, reflecting operational momentum and improving margins. Carnival’s consistent performance—beating earnings for 10 consecutive quarters—underscores its resurgence as a key player in the travel sector.

With $1.2 billion in free cash flow projected for the full year, the company is navigating a disciplined financial course, reinforcing its position as a sector leader. Market interest is swelling, as seen in the nearly $948 million in trading volume this week. Technically, moves beyond $29.56 or below $24.37 could mark pivotal inflection points for the stock.

Carnival's recovery story is bolstered by clear consumer willingness to spend on leisure, which bodes well for continued growth into 2026. The setup suggests the company is not merely rebounding but potentially entering a new era of profitability and market leadership. Investors watching for signals in a choppy macro environment may find Carnival’s trajectory reassuring.

While risks remain, particularly with global travel volatility, Carnival’s recent track record and financial strength give confidence. With consumer behavior leaning in favor of experiences over goods, Carnival seems to be charting a stable course forward, offering both near-term catalysts and long-term upside potential as it reclaims its place in the post-pandemic travel boom.

Previously, we covered a bullish thesis on Carnival Corporation & plc by Alpha Ark Team in December 2024, which highlighted the company’s post-COVID recovery, debt reduction efforts, and favorable supply-demand dynamics. The company’s stock price has depreciated by approximately 0.7% since our coverage. This is because the thesis is still unfolding. Stock Region shares a similar view but emphasizes near-term earnings momentum and technical signals.

CCL isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of CCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.