1 Cruise Ship Stock That's Still in Choppy Waters

NYSE: CCL | Carnival Corporation  News, Ratings, and Charts

CCL – Cruise ship stock Carnival Corporation (CCL) has witnessed an upsurge in bookings in the post-pandemic era. However, it missed consensus estimates in its latest reported quarter. Moreover, it has lost more than 60% in 2022 and demonstrates poor profitability. CCL is still in choppy waters and might be best avoided now. Keep reading….

Leisure travel company Carnival Corporation & plc (CCL) operates in the United States, Canada, Continental Europe, the United Kingdom, Australia, New Zealand, Asia, and internationally.

On September 30, 2022, CCL’s CEO, Josh Weinstein, said, “Since announcing the relaxation of our protocols last month, we have seen a meaningful improvement in booking volumes and are now running considerably ahead of strong 2019 levels.” The company’s revenue in the third quarter ended August 31, 2022, came in at $4.30 billion, up 688.5% year-over-year.

However, it missed analysts’ average estimate of $4.90 billion, according to IBES data from Refinitiv. Over the past month, CCL has lost 20.7% to close the last trading session at $7.43. It has lost 63.1% year-to-date and 70.8% over the past year.

CCL is trading lower than its 50-day moving average of $9.69 and its 200-day moving average of $14.95. Moreover, the stock has lost 70.6% since hitting its 52-week high of $25.29 on November 5, 2021.

Here is what could shape CCL’s performance in the near term:

Weakening Balance Sheet

CCL’s cash and cash equivalents came in at $7.07 billion for the period that ended August 31, 2022, compared to $8.94 billion for the period that ended November 30, 2021.

Its total current assets came in at $8.43 billion, compared to $10.13 billion, while its long-term debt came in at $28.52 billion, compared to $28.51 billion for the same period.

Negative Profit Margins

CCL’s trailing-12-month gross profit margin of 25.55% is 29.8% lower than the industry average of 36.38%. Its trailing-12-month EBITDA and net income margins of negative 26.89% and 73.98% are lower than the industry averages of 11.25% and 5.77%, respectively.

Furthermore, CCL’s trailing-12-month ROCE, ROTC, and ROTA of negative 61.23%, 6.64%, and 13.70%, compared with the industry averages of 14.96%, 6.91%, and 5.12%, respectively.

POWR Ratings Reflect Bleak Prospects

CCL has an overall rating of D, equating to a Sell in our proprietary POWR Rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree. 

CCL has a D grade for Quality, consistent with its lower-than-industry profit margins.

In addition, it has an F grade for Stability, in sync with its beta of 2.04.

In the 4-stock Travel – Cruises industry, CCL is ranked #2. The industry is rated F.

Click here for the additional POWR Ratings for CCL (Growth, Value, Momentum, and Sentiment).

View all the top stocks in the Travel – Cruises industry here

Bottom Line

CCL’s revenue has declined at a 22.3% CAGR over the past three years. Its EPS is expected to remain negative in 2022. Moreover, its balance sheet is riddled with a declining cash balance and mounting debt. Given the stock’s poor momentum, I think CCL might be best avoided now.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


CCL shares fell $0.10 (-1.35%) in premarket trading Thursday. Year-to-date, CCL has declined -63.07%, versus a -19.69% rise in the benchmark S&P 500 index during the same period.


About the Author: Riddhima Chakraborty


Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CCLGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


How Much Resistance @ 6,000 for Stocks?

The post-election rally was an exciting burst for the stock market. With that the S&P 500 (SPY) made new highs just above 6,000. Since then stocks have struggled begging the question: what happens next? 44 year investing veteran Steve Reitmeister provides the answers along with his top 11 stocks to buy now.

3 Streaming Stocks Benefiting from Cord-Cutting Trends

As streaming continues to dominate the digital entertainment landscape, the global streaming market presents a lucrative investment opportunity. So, it could be ideal to invest in fundamentally solid streaming stocks Netflix (NFLX), Walt Disney (DIS), and Roku (ROKU). Read further...

3 Gold Stocks to Buy as Safe-Haven Demand Grows

Gold is a stable investment now due to its role as a safe-haven asset during economic uncertainty, rising demand, industrial use, and growth, bolstered by central bank purchases and interest rate cuts. Therefore, investors should consider investing in top gold stocks such as Newmont (NEM), Barrick Gold (GOLD), and Agnico Eagle Mines (AEM). Read more...

3 AI Stocks Transforming Industries and Driving Future Growth

With rapid digitalization, rapid adoption, and development, as well as surging demand, the AI market is on the rise. Amid this backdrop, investors could buy fundamentally solid AI stocks NVIDIA Corporation (NVDA), Microsoft (MSFT), and Meta Platforms (META) poised for substantial gains. Continue reading...

Does Trump Change Stock Market Outlook?

The rally of the S&P 500 (SPY) after the election gives a sense that investors are happy that Trump was elected. But perhaps there is more to this story than meets the eye. That’s why Steve Reitmeister shares his updated market outlook taking into account the pros and cons of Trumps proposed new policies. This comes with a preview of his top 11 stocks to buy now.

Read More Stories

More Carnival Corporation (CCL) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CCL News