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Carnival Pullback Draws Buy Calls as Valuation Looks Cheaper

Recent results showed record profits, with deposits at all‑time highs to reinforce confidence in the rebound.

Overview

  • The stock trades about 11% below its one‑year peak with a roughly 14.4 price‑earnings multiple and a price‑to‑sales ratio below its three‑year average, supporting a value case.
  • Fiscal third‑quarter results (ended Aug. 31) set company records with $2 billion in adjusted net income and $8.2 billion in revenue, alongside record customer deposits, and full‑year guidance was raised for the third time in 2025.
  • Demand continues to outpace capacity, driving orders for more ships, the opening of exclusive destinations such as Celebration Key, new home ports in Norfolk and Baltimore, and a dedicated Hawaii series from California.
  • Shares have climbed roughly 270%–285% over three years but slipped after the latest earnings, creating the current dip highlighted by bullish analysts.
  • Management is refinancing and paying down debt to strengthen the balance sheet, although the stock’s history includes steep sell‑offs during major market shocks.