AI Analyst Summary
Carnival Corporation presents a compelling recovery-cycle value play, trading at just 12.7x trailing earnings with a sub-1.0 PEG ratio — rare for a consumer cyclical leader of its scale. Revenue is growing at 5.3% YoY and the company has beaten EPS estimates in each of the last four quarters, signaling strong operational execution. The primary risk is the near-term EPS contraction of -6.5% YoY, which raises questions about margin sustainability and cost discipline as the fleet operates at elevated capacity.
Fundamentals
Pe
Trailing P/E: 12.7x | Forward P/E: 10.5x · 5.0/5
Trailing P/E of 12.7x is materially below the Consumer Cyclical sector median, and the forward P/E compressing to 10.5x signals strong earnings growth expectations. Valuation appears undemanding relative to the recovery trajectory.
Peg
PEG Ratio: 0.98 · 5.0/5
PEG just under 1.0 indicates investors are paying less than 1x for each unit of growth — a compelling signal of value relative to growth. This suggests the market has not fully priced in the earnings recovery cycle.
Analyst Rating
Buy consensus (1.6) · 4.0/5
Consensus of 1.6 from 25 analysts (23 Buy / 7 Hold / 0 Sell) reflects strong and broad-based bullish conviction. No sell-side bears on record. Rating maps to a score of 4 on the Buy threshold.
Earnings Trend
EPS Growth YoY: -6.5% | Revenue Growth YoY: +5.3% · 2.0/5
Year-over-year earnings growth is negative at -6.5%, which is a headwind despite solid revenue expansion of 5.3%. The divergence between revenue and EPS growth suggests margin pressure or elevated costs weighing on the bottom line. Trend is below average but may be transient.
Price Target Beat
EPS Beat Rate: 4 of 4 quarters · 4.0/5
Carnival beat EPS estimates in all 4 of the last 4 reported quarters, demonstrating consistent execution. With only 4 quarters of data available, a full 8-quarter history cannot be assessed, but the perfect recent beat rate is a constructive signal. Scored as 4 (equivalent to 5-of-8 proxy) given limited but flawless history.
Management
Consistent EPS Beater | Strong Analyst Confidence · 4.0/5
A 4-for-4 EPS beat rate, zero sell-side sell ratings, and strong analyst consensus reflect confidence in management's execution. Capital allocation appears disciplined within the context of a post-pandemic recovery. Score is capped at 4 due to the negative YoY earnings growth signal.
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