Carnival posted strong fiscal second-quarter results and raised its annual forecast
Carnival Corp (NYSE:CCL) stock is up 9.7% at $17.98 at last glance, headed for its largest single-day percentage gain since June 12, 2023, after the cruise line reported strong fiscal second-quarter results and raised its annual profit forecast due to higher prices and steady demand. CEO Josh Weinstein stated that they "closed yet another quarter delivering records, this time across revenues, operating income, customer deposits and booking levels, exceeding our guidance on every measure."
Analysts aren't convinced, however, with no bull notes yet to speak of today. Morgan Stanley maintained its "underweight" rating, citing weak pricing/yields versus its peers, high leverage, and high valuation.
Headed for its sixth-straight daily win, CCL is trading at its highest levels since January, though still down 3.4% year to date. The stock is also above all notable daily moving averages between the 20- and 320-day trendlines.
Options bulls are chiming in on the rally, with 274,000 calls exchanged so far today, compared to 80,000 puts. Overall, the contracts traded amount to 3.8 times CCL's average daily options volume. The weekly 6/28 18-strike call is the most popular, where new positions are being bought to open.
It's also worth noting that short interest has been building and now represents 10.6% of the stock's available float. It would take shorts nearly four days to cover their bets, at CCL's average pace of trading.