Shares of Carnival Corporation (NYSE: CCL) have been advancing markedly at the outset of the trading week, fueled by renewed enthusiasm in the cruise industry sparked by Royal Caribbean Cruises Ltd's (NYSE: RCL) recent financial performance and optimistic profit forecast. Investors are closely watching Carnival's trajectory as the company reflects broad positive trends across the sector.
Royal Caribbean’s Strong Earnings Propel Sector Outlook
Last week, Royal Caribbean released its fourth-quarter financial results, reporting adjusted earnings per share of $2.80, aligning with analyst expectations. Demonstrating robust consumer demand, the company achieved a net yield increase of 3.1%. Importantly, Royal Caribbean issued a fiscal 2026 earnings guidance range of $17.70 to $18.10 per share, surpassing consensus estimates that anticipated $17.66 per share.
Management highlighted accelerating momentum heading into 2026, indicating strengthening consumer appetite for leisure cruising experiences. This upbeat outlook has positively influenced investor sentiment not only toward Royal Caribbean but also across the broader cruise industry, invigorating shares of peer companies including Carnival.
Carnival Shares Exhibit Technical Strength Amidst Mixed Momentum Indicators
Carnival’s stock is currently trading 6.9% above its 20-day simple moving average (SMA) and 11.8% above its 100-day SMA, reflecting longer-term price appreciation and underlying strength. Over the past twelve months, Carnival’s shares have risen by 19.09%, positioning the stock closer to its 52-week highs instead of lows—an indication of a generally bullish trend.
However, technical indicators present a nuanced picture. The Relative Strength Index (RSI) sits at 53.24, placing the stock in neutral territory, suggesting neither overbought nor oversold conditions. Contrarily, the Moving Average Convergence Divergence (MACD) remains below its signal line, signaling some bearish pressure. Together, these metrics suggest that while Carnival enjoys an overall upward trajectory, near-term momentum remains mixed.
Key technical levels for Carnival include resistance at approximately $33.00 and support around $28.00, with current prices testing these ranges amid volume fluctuations.
Overview of Carnival’s Business and Brand Portfolio
Carnival Corporation holds the distinction of being the world's largest cruise operator, managing a fleet exceeding 90 ships across multiple markets. The company’s diverse lineup includes well-known brands such as Carnival Cruise Lines, Holland America, Princess Cruises, and Seabourn in North America; P&O Cruises and Cunard Line in the United Kingdom; Aida in Germany; and Costa Cruises serving Southern Europe.
Recently, Carnival consolidated its Australian operations by integrating the P&O Australia brand into its main portfolio. Additionally, the firm operates Holland America Princess Alaska Tours, servicing the Alaska and Canadian Yukon regions. Altogether, Carnival’s brands hosted nearly 14 million passengers in 2025, underscoring its significant footprint within the global cruise industry.
Upcoming Earnings Expectations for Carnival
Market participants eagerly anticipate Carnival’s next earnings release scheduled for March 20. Projections suggest an EPS of $0.18, representing an increase from $0.13 in the prior year. Revenue expectations stand at $6.12 billion, up from $5.81 billion year-over-year.
With a current price-to-earnings ratio of approximately 14.9 times, Carnival’s valuation is considered attractively positioned relative to sector peers, hinting at a value investment opportunity.
Analyst Ratings and Valuation Insights
The consensus among equity analysts is favorable, assigning a Buy rating to Carnival with an average price target near $35.95. Recent revisions include:
- Truist Securities: Hold rating with target increased to $34.00 (January 22)
- TD Cowen: Buy rating with target raised to $38.00 (January 13)
- UBS: Buy rating with target lifted to $38.00 (January 12)
The anticipated earnings growth of approximately 38% underpins these target price uplifts, with analysts viewing the expected expansion as justification for a roughly 12% potential price increase from current levels.
Benzinga Edge Rankings Reflect Mixed Momentum Versus Strong Growth and Value
Carnival’s Benzinga Edge scorecard illustrates a balanced outlook:
- Value Rank: 75.67, indicating strong valuation attractiveness relative to competitors
- Growth Rank: 86.35, reflecting substantial growth prospects
- Momentum Rank: 44.43, showing the stock is underperforming the broader market on current price momentum
This blend suggests that while fundamental strength in growth and value categories exists, the near-term price action could lag broader market trends.
Exchange-Traded Fund (ETF) Holdings Impact
Carnival holds a material weight in several notable ETFs, such as the Invesco S&P 500 GARP ETF (NYSE: SPGP) at 2.27%, the Castellan Targeted Equity ETF (NASDAQ: CTEF) at 4.31%, and the SPDR Global Dow ETF (NYSE: DGT) at 1.01%. Consequently, significant inflows or outflows in these funds could trigger automatic adjustments in Carnival’s shares through buying or selling activities.
Market Response and Stock Price Action
On Monday, Carnival’s shares rose sharply, reaching $32.20—a 7.26% increase from prior levels, according to Benzinga Pro data at the time of reporting. This appreciation aligns with the positive sentiment rippling through the cruise sector following Royal Caribbean’s earnings and guidance disclosures.
In summary, Carnival Corporation is benefiting markedly from the uplift in the cruise industry's outlook, driven primarily by Royal Caribbean’s strong financial results and optimistic 2026 forecast. While technical indicators present a cautious mix of signals, the stock's valuation metrics and solid analyst endorsement suggest underlying growth and value potential. Investors should monitor upcoming earnings releases and sector developments closely to assess sustained momentum.