Shares of Carnival Corporation (NYSE: CCL) rallied notably on Thursday, standing in contrast to the prevailing market downturn where indices such as the Nasdaq and S&P 500 registered losses of 1.31% and 0.76% respectively. This upward movement in Carnival's stock seems closely linked to industry-wide confidence, notably influenced by Royal Caribbean Cruises Ltd.'s (NYSE: RCL) fourth-quarter earnings release earlier that day.
Royal Caribbean's financial results demonstrated the cruise industry's robust position, reporting adjusted earnings per share of $2.80—meeting analyst expectations. The company's performance highlighted key indicators of strength in cruise demand, including a 3.1% increase in net yield, a 2.9% rise in net per diem, and a modest growth in occupancy rates by 20 basis points year-over-year, reaching 107.8%. Total revenue for the quarter was reported at $4.259 billion.
Looking ahead, Royal Caribbean provided guidance for fiscal year 2026 with adjusted earnings projected between $17.70 and $18.10 per share. This forecast surpasses the consensus estimate of $17.66 per share typical among analysts. CEO Jason Liberty emphasized the accelerated momentum entering 2026 and reaffirmed that customer demand for cruise vacations remains strong.
Investors have shifted focus toward Carnival Corporation's upcoming earnings report, scheduled for March 20. Expectations include earnings per share of approximately $0.18, marking an increase from $0.13 in the prior year. Revenue estimates also reflect growth, anticipated at $6.12 billion compared to $5.81 billion previously. The forward price-to-earnings ratio stands at 14.2 times, suggesting potential value opportunities according to valuation metrics.
Analysis from multiple investment firms supports a generally positive outlook on Carnival stock. The consensus among analysts is a Buy rating with an average target price around $34.75 per share. Notably, Truist Securities recently revised its target upward to $34.00 and assigned a Hold rating, while both TD Cowen and UBS affirmed Buy ratings, increasing their price targets to $38.00. These actions reflect evolving confidence following the recent cruise sector performance.
On the trading floor, Carnival shares appreciated by approximately 6.96% to reach $30.72 as recorded on Thursday, with Royal Caribbean's stock posting an even greater increase of over 14%, positioning both companies prominently in cruise industry equities for the day.
Benzinga’s Top Stocks report further highlights several leading companies demonstrating strong combined metrics of value, momentum, and quality, of which cruise operators are integral. This analysis sheds light on stocks primed to lead through 2026, underscoring the sustained investor interest in the sector’s growth potential.