NEW YORK - Carnival Corp. (NYSE:CCL), a leading leisure travel company, saw a slight increase in its stock price on Tuesday, closing at $12.78 per share after trading 19.32 million shares. Despite a modest gain of 0.16%, the company's valuation stood at $16.18 billion, with market performance showing resilience; the stock is currently 41.08% above its 52-week low, though still 52.97% below its high.
On Monday, Carnival's shares had risen by 1.46%, contributing to a notable year-to-date increase of 58.56%. Over the past five days and month, the stock has seen a 4.24% change. This performance comes amid a broader context where the AI industry is expected to expand significantly, from $137 billion in 2022 to more than $1.81 trillion by 2030.
Carnival Corp.'s shares have notably outpaced the wider industry this year, with an impressive growth rate of 98.50%. The company has raised its growth expectations for fiscal year 2023 revenue, forecasting increases of 83.50% for the current quarter and 81.80% for the next quarter.
Investors are now eyeing Carnival's next earnings report, anticipated between December 19 and December 26, which could signal improved dividends despite ongoing concerns about the company's debt.
The company's shareholder base comprises 974 institutions with Vanguard Group Inc and Blackrock (NYSE:BLK) Inc being the largest institutional holders. They hold over 113.24 million and over 62.84 million shares valued at more than $1.45 billion and over $803.16 million respectively.
Significantly, Vanguard Total Stock Market Index Fund and Vanguard 500 Index Fund are the top mutual funds invested in Carnival, with holdings valued at $399.98 million and $305.62 million respectively.
Analysts have average revenue estimates for Carnival at $5.3 billion for the current quarter, with higher expectations of $5.49 billion for the following quarter ending in February 2024.
The company also has a considerable short interest, with 119.51 million shares shorted and a days-to-cover ratio of 3.83, reflecting investor caution amidst Carnival's growth prospects and challenges ahead.
InvestingPro Insights
As per InvestingPro, Carnival Corp. operates with a significant debt burden, which aligns with ongoing investor concerns about the company's debt. Yet, the company is also a prominent player in the Hotels, Restaurants & Leisure industry, which is expected to see significant growth in the coming years.
InvestingPro's real-time data provides additional context to Carnival's financial landscape. The company's market cap stands at $14.58 billion, with a negative P/E ratio of -8.91, reflecting the company's current lack of profitability. On a brighter note, the company's revenue growth over the last twelve months as of Q3 2023 was a robust 108.34%, indicating a strong recovery in sales.
InvestingPro Tips also indicate a volatile stock price for Carnival Corp. Over the last six months, the stock has seen a large price uptick, but the last three months have seen a significant fall. This aligns with the data showing a six-month price total return of 30.01%, but a three-month return of -24.06%.
In conclusion, Carnival's financial health and stock performance present a mixed picture, with strong industry presence and significant sales growth tempered by high debt and price volatility. For more in-depth analysis and additional tips, consider exploring InvestingPro's comprehensive resources.
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