CCL stock surged close to 9% on Tuesday, riding strong on the combination of better-than-expected second-quarter 2025 financial results, raised guidance, and strong demand trends in the cruise industry.
Soon after the opening bell today, the Carnival Corporation stock started making considerable gains.
At the time of publication, the CCL stock is trading at $26.19, which is 8.8% higher than its previous close.
The CCL stock jump came as Wall Street is expecting a strong bull momentum on Tuesday after US President Donald Trump announced a ceasefire, which is expected to diffuse the Israel-Iran conflict.
The Dow Jones Industrial Average climbed 225.3 points, or 0.53%, reaching 42,807.13. Meanwhile, the S&P 500 gained 36 points, or 0.60%, to open at 6,061.21.
The Nasdaq Composite also rose, adding 178.6 points, or 0.91%, to start the day at 19,809.62.
Overall, all three major indexes showed solid gains right from the market open, reflecting positive investor sentiment.
Why CCL stock can be a good pick?
Carnival reported outstanding results for the second quarter, beating analyst expectations on both earnings and revenue.
The company posted an adjusted profit of 35 cents per share, surpassing the FactSet consensus estimate of 25 cents per share.
Revenue climbed to $6.33 billion, exceeding the anticipated $6.21 billion and rising significantly from $5.78 billion in the same quarter last year.
The strong financial performance of the company is underpinned by exceptionally robust booking trends.
The company reported record-high customer deposits totaling $8.5 billion, signaling very strong forward demand for cruises through 2025 and 2026 at historically elevated prices.
This substantial backlog of bookings not only provides clear visibility into future revenue streams but also supports Carnival’s decision to raise its full-year guidance.
Analyst ratings and price targets
The CCL stock has garnered positive sentiment from Wall Street analysts.
The share enjoys a ‘Buy’ rating from Citi with a price target of $28.00 while Mizuho Securities has kept the target even higher at $33.00.
Out of 14 analysts on TipRanks, 9 rated the CCL stock in the ‘Buy’ category, with other 6 giving it a ‘Hold’ rating.
Analysts have been quick to point out Carnival’s impressive streak of consistently beating earnings expectations, with an average surprise of over 450% across the last four quarters.
This strong track record has helped build considerable investor confidence.
Additionally, the company’s robust booking trends, gains in pricing power, and the decision to raise guidance ahead of the Q2 earnings release have further fuelled bullish sentiment among market watchers.
Some roadblocks
Despite Carnival’s strong performance, there are some challenges investors should keep in mind.
Rising operational costs, particularly due to higher fuel prices and increased dry dock expenses, are putting pressure on profit margins in the near term.
On the customer front, Carnival recently faced some backlash over changes to its loyalty program, which caused dissatisfaction among some frequent cruisers.
The post CCL stock rises 9%: why Carnival Corporation share can be a good pick appeared first on Invezz
