Carnival: Upside Persists, But Keep A Close Watch

Summary

  • Carnival Corporation's stock surged 25% in under two months, validating my prior bullish short-term outlook despite sector risks.
  • Consumer discretionary stocks, especially cruises, have rebounded recently as macro risks eased and sector valuations became more attractive.
  • Carnival's Q2 2025 earnings outperformed expectations, and the company upgraded its guidance, supporting continued optimism.
The happy couple toasts with cocktails during the cruise

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When I last wrote about the cruise operator Carnival Corporation (NYSE:CCL), it was clear that the stock "could continue to surprise upwards in the short term." This reading was based on the company's strong financial performance, upgraded outlook, and a positive turn

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This article was written by

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Manika is a macroeconomist with over 20 years of experience in industries including investment management, stock broking, investment banking. She also runs the profile Long Term Tips [LTT], which focuses on the generational opportunity in the green economy. Her investing group, Green Growth Giants, takes the theme a step further from LTT with a deeper dive into opportunities presented by the segment.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CCL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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