Is CCL a good stock to buy? We came across a bullish thesis on Carnival Corporation & plc on Investomine’s Substack. In this article, we will summarize the bulls’ thesis on CCL. Carnival Corporation & plc’s share was trading at $26.39 as of March 9th. CCL’s trailing and forward P/E were 12.77 and 10.14, respectively according to Yahoo Finance.
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Carnival Corporation & plc, a cruise company, provides leisure travel services in North America, Australia, Europe, and internationally. CCL has reached a structural turning point, transitioning from post-pandemic recovery to disciplined value creation.
In fiscal year 2025, Carnival delivered record adjusted net income of $3.1 billion, the highest in company history, alongside an adjusted ROIC above 13%, signaling strong operational credibility. Revenue, adjusted EBITDA of $7.2 billion, and adjusted EPS of $2.25 all exceeded guidance, while customer deposits reached all-time highs, reflecting robust and sustained demand.
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This performance was driven by strong close-in bookings, disciplined pricing, higher onboard revenue per passenger, and effective cost controls, demonstrating that Carnival’s growth is both structural and broad-based. Approximately 67% of 2026 capacity is already booked, with record pricing and occupancy in North America and Europe, supported by limited capacity growth and improved onboard monetization, enhancing pricing power.
Operational efficiency, fleet upgrades, and controlled labor costs kept non-fuel cruise costs largely in check, providing durable earnings leverage. On the financial front, Carnival has reduced over $10 billion in total debt since early 2023, refinanced $19 billion in 2025, and is expected to lower net debt to $21.8 billion in 2026, achieving a net debt/adjusted EBITDA ratio below 3.0x and securing near-investment-grade ratings from major agencies.
Shareholder-friendly actions, including reinstated dividends, convertible debt retirement, and potential buybacks, reflect a renewed focus on capital discipline. While macroeconomic sensitivity, fuel and FX exposure, and high absolute debt remain risks, Carnival’s strong execution, robust demand, and improved financial position present a compelling bullish investment case, with future upside tied to disciplined growth, stable markets, and continued capital allocation excellence.
Previously, we covered a bullish thesis on Carnival Corporation & plc (CCL) by Alpha Ark Team in December 2024, highlighting the company’s post-pandemic recovery, debt reduction, and improving profitability. CCL’s stock price has appreciated by approximately 2.84% since our coverage. Investomine shares a similar view but emphasizes the 2025 structural turning point, with record net income, strong ROIC, and shareholder-focused capital allocation.
Carnival Corporation & plc is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held CCL at the end of the fourth quarter which was 69 in the previous quarter. While we acknowledge the risk and potential of CCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CCL and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
