Up 24% in 1 Month Amid Falling Fuel Prices, Is Carnival Still a Strong Buy Before June 23?
The global cruise company is benefiting from record bookings and now falling oil prices.
Up 24% in 1 Month Amid Falling Fuel Prices, Is Carnival Still a Strong Buy Before June 23?
Overview
As talks for a resolution to the conflict in Iran continue, crude oil prices hit a three-month low, and prices at the pump are now averaging less than $4 per gallon. Optimism and hope are driving down fuel costs, and record-breaking demand for cruise vacations is all creating favorable conditions for the red-hot Carnival Corp. (NYSE: CCL). So is the cruise line still a strong buy for investors?
There are few companies more fuel-dependent than Carnival. The decline in oil prices turns what's been a short-term headwind into a tailwind for the second half of the year. Management expects fuel prices to continue falling through the remainder of 2026.
Details
The cost of oil is just a part of the story, though, as Carnival's fundamentals are already strong. Bookings and prices are both at record highs. Last quarter, Carnival raised its full-year outlook. Customer deposits in the first quarter reached a record of nearly $8 billion, a 10% increase from the prior year's high. The stock is up 24% in the past month.
Source
Originally published at www.fool.com.
