The last few days have been a rather quiet cruise for Carnival (NYSE:CCL)(NYSE: CUK) action. Buoyed by strong quarterly results, investors and experts have become significantly more optimistic about the potential of the popular cruise operator. One expert estimates that the shares have an upside potential of close to 40%.
A bull becomes more optimistic
Shortly after the earnings release, Macquarie analyst Paul Golding raised his Carnival price target by $1 to a new level of $25 per share while maintaining his outperform (or buy) rating. At the stock’s last closing price, that new target calls for a 36% upside.
The cruise industry is booming these days; it seems that the post-pandemic rush to get out of the house and journey is becoming a long-tail trend. People have the money and time to wander, and companies like Carnival offer a relatively easy and fun way to get away from it all for a little while.
In his latest analysis, Golding was optimistic about Carnival’s “strong” fundamentals for its fiscal second quarter. He added that demand is expected to remain robust, helping to increase revenues and profitability.
Surfing the wave
These days, it’s not hard to be excited about Carnival (and, more broadly, the cruise industry as a whole). The company is riding a wave of monstrous demand that may not peak anytime soon.
Those second quarter results were impressive no matter how you look at them. Revenue increased by 18% year-over-year (to nearly $5.8 billion), while non-GAAP (adjusted) net income fell from a loss of $0.31 per share in the l last year to a profit of $0.11.
Should you invest $1,000 in Carnival Corp. right now ?
Before you buy Carnival Corp. stock, consider the following:
THE Motley Fool, securities advisor The team of analysts has just identified what they believe to be the 10 best stocks for investors to buy now… and Carnival Corp. was not part of it. The 10 selected stocks could produce monster returns in the years to come.
Consider when Nvidia made this list on April 15, 2005…if you had invested $1,000 at the time of our recommendation, you would have $757,001!*
Securities Advisor provides investors with an easy-to-follow blueprint for success, including portfolio building advice, regular analyst updates and two new stock picks each month. Stock Advisor the service has more than quadrupled the return of the S&P 500 since 2002*.
*Stock Advisor returns as of June 24, 2024
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.
Carnival Stock Up 36%, Says 1 Wall Street Analyst was originally published by The Motley Fool
