Buy shares carnival cruises
Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Unlike its vacation packages, Carnival Corp 's NYSE: CCL stock is getting cheaper these days.
RCL turned in, it still significantly lags the broader market. CCL data by YCharts. Meanwhile, Carnival's operations are improving and shareholders have good reason to expect record results this year. The gap between the trends in the stock and in the business could make shares a solid buy for long-term investors. Start with the fact that fiscal is shaping up to be a banner operating year. Package bookings are also trending higher, both in terms of volume and average prices, which points to healthy demand for cruises.
Overall, the company is performing ahead of management's projections. While boosting his full-year profit forecast, CEO Arnold Donald told investors in June that Carnival's "strong second quarter demonstrates continued momentum as we again achieved a near doubling of adjusted earnings per share.
Two key challenges are offsetting some of those hefty demand gains. Foreign currency swings are pressuring reported results, for one.
Rising fuel prices are also producing a drag on earnings growth -- though Carnival has limited the gas price impact through its fuel hedging program. Carnival's finances are improving despite those issues. CCL Net Income TTM data by YCharts. Earnings can be volatile in the cruise ship business, though, which is why investors should also keep an eye on cash flow.
Carnival PLC Share Price | This is Money
That has helped fund a big increase in capital expenditures ship upgrades and fleet growth while leaving plenty of excess cash for additional returns to shareholders. The leisure travel industry is sensitive to weakening economic growth. Vacation packages are among the first spending category that people cut out when they're in money-saving mode. That's why expectations for slowing global growth likely play a big role in the decline in Carnival's stock price lately.
But investors with a longer time horizon can look past this short-term challenge. Meanwhile, the stock is valued at a nearly five-year low in relation to earnings.
Investors can buy the cruise operator for just 16 times trailing earnings, putting it at a discount not only to the broader stock market but also to less-profitable Royal Caribbean.
Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
The Motley Fool has a disclosure policy. Demitri covers consumer goods and media companies for Fool.
Carnival Cruise Shareholder Benefits | CruiseMapper
Skip to main content The Motley Fool Fool. Premium Advice Help Fool Answers Contact Us Login. Latest Stock Picks Stocks Premium Services. Stock Advisor Flagship service. Rule Breakers High-growth stocks. Income Investor Dividend stocks.
Hidden Gems Small-cap stocks. Inside Value Undervalued stocks.
Carnival Share Price (CCL) - Buy Carnival Shares (CCL.L, LON:CCL) - CCL Share Price Today - Buy CCL Shares Now - Historical Prices
Learn How to Invest. Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards.
Mortgages Compare Mortgage Rates Get Pre-Approved How Much House Can I Afford? Taxes How to Reduce Your Taxes Deductions Even Pros Overlook Audit-Proof Your Tax Return What Info Should I Keep? Helping the World Invest — Better. How to Invest Learn How to Invest. Personal Finance Credit Cards Best Credit Cards of Best Credit Card Sign-Up Bonuses Best Balance-Transfer Credit Cards Best Travel Credit Cards Best Cash-Back Credit Cards Best No-Annual-Fee Credit Cards Best Small Business Credit Cards.
Jul 19, at 8: Prev 1 2 3 4 Next. Motley Fool push notifications are finally here Allow push notifications to help you stay on top of Breaking investing news Earnings coverage Market movers Special offers and more Subscribe to notifications You can unsubscribe at any time.