Carnival Corporation (CCL) Shares Soar 6.07% on Strong Bookings, EU Trade Optimism

Carnival Corporation (CCL) shares surged by 6.07%, reaching its highest level since March 2025, with an intraday gain of 6.38%.

The strategy of buying CCL shares after they reached a recent high and holding for one week resulted in significant returns over the past five years. The strategy achieved an overall return of 297.73%, surpassing the benchmark return of 49.45% by 248.28%. Although the strategy had a maximum drawdown of -32.88% and a Sharpe ratio of 1.78, indicating some risk and moderate returns, the compound annual growth rate (CAGR) was 78.75%, reflecting the strategy's effectiveness in capturing long-term gains.

Carnival Corporation's stock price has been influenced by several positive factors. The company has benefited from strong bookings and yield growth, surpassing yield guidance with a 7.3% increase, building on last year's 17% improvement. This robust performance has contributed to an optimistic outlook for the stock.

Additionally, the recent financial results of Carnival Corporation show encouraging signs of recovery and growth, with a significant improvement reported in the first quarter of fiscal year 2025. This financial recovery has further boosted investor confidence in the company.

Another factor contributing to the surge in Carnival's stock price is the positive market sentiment regarding EU trade. The delay of EU tariffs has boosted optimism for European travel demand, which has positively impacted travel stocks, including Carnival.

Furthermore, the stock rating upgrade from StockNews.com from a "hold" rating to a "buy" rating on May 16, 2025, has also positively influenced the stock. This upgrade reflects the growing confidence in Carnival's future prospects and has contributed to the recent fluctuations in its stock price.