Carnival Corporation Stock: Is CCL Outperforming the Consumer Cyclical Sector?

Miami, Florida-based Carnival Corporation & plc (CCL) is a cruise company that provides leisure travel services in North America and internationally. With a market cap of $38.3 billion, the company operates through four segments: NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other. 

Companies with a market cap of $10 billion or more are typically referred to as “big-cap stocks.” CCL fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the consumer cyclical industry.       

However, the stock currently trades 9.4% below its 52-week high of $34.03 recorded on Feb 6. CCL has risen 22.9% over the past three months, outperforming the State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 4.6% rise during the same time frame.         

In the longer term, CCL has delivered a similar performance. The stock has surged 32.5% over the past 52 weeks, rallying XLY's 12.5% surge over the same period.  

CCL has been trading above its 200-day moving average since this month and also above its 50-day moving average since last month, with some fluctuations.

On June 16, Carnival stock rose more than 1% after a 3% decline in WTI crude oil prices, lowering fuel costs and boosting profitability prospects for the company. This marks a 3.25-month low for WTI crude amid the US-Iran deal to reopen the Strait of Hormuz, boosting expectations of a revival in oil supplies.

When stacked against its rival, Norwegian Cruise Line Holdings Ltd. (NCLH) has grown 13.4% over the past year, lagging behind CCL.   

However, sentiment on CCL remains highly optimistic. Among the 17 analysts covering the stock, the consensus rating is a “Strong Buy.” Its mean price target of $35.24 suggests 11.9% upside from current levels.