Carnival Corporation & plc engages in the provision of leisure travel services in North America, Australia, Europe, Asia, and internationally. The company operates through four segments: NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other. It operates port destinations, private islands, and a solar park, as well as owns and operates hotels, lodges, glass-domed railcars, and motor coaches. The company offers its services under the Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises, and Cunard brand. Additionally, it sells its cruises primarily through travel agents, tour operators, vacation planners, and websites. Carnival Corporation & plc was founded in 1972 and is headquartered in Miami, Florida.

Carnival looks like a company with clearly improved operating profitability, but with a still-mixed risk profile in terms of capital structure and liquidity. A P/E ratio of 12.75 is below the industry median, which in itself supports the valuation; however, P/S and P/B are significantly above industry benchmarks, suggesting that the market is already pricing in a strong business recovery. P/FCF looks moderate and better than P/S and P/B, confirming the presence of cash flow, but it does not fully remove concerns about the company being expensive relative to revenue and equity. Profitability is strong: ROE, ROA, operating margin, and net margin are noticeably above the median, which is an important positive for valuation. At the same time, profitability trends are broadly stable, with no signs of a sharp deterioration, which reduces the risk of an immediate downward revision. On the other hand, debt/equity is very high relative to the industry, while the current ratio and quick ratio remain weak, indicating limited financial flexibility. Long-term debt remains substantial, although it has been declining compared with earlier periods, so debt risk has not yet disappeared. Revenue and earnings in absolute terms look strong, but EBITDA dynamics and some quarterly figures show that the recovery is not linear and depends on seasonality. Equity is growing, and net worth and equity are improving, which supports balance sheet stability, but this does not fully offset the high debt burden. The absence of dividend yield removes one source of support for an income-oriented investor. Overall, the fundamentals justify a moderately positive view, but due to expensive valuation multiples on revenue and capital, weak liquidity, and a heavy debt load, the valuation should remain conservative. For an investor, this is not a story of deep undervaluation, but rather of a turnaround that has already been partially realized, with limited but still positive upside potential.

Carnival Corporation Ltd.

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Сильный индекс, значительно вырос. Рынок на стороне быков.

Strong index, significantly up. The market is on the bulls' side.

Средний индекс, значительно вырос. Увеличился приток средств в лонги.

Medium index, significantly up. The inflow of funds into longs has increased.

Carnival’s strong profitability and earnings support the valuation, but its high debt burden, weak liquidity, and expensive P/S and P/B ratios limit the upside.

Royal Caribbean Cruises Ltd. RCL has a stronger earnings outlook, healthy demand and clear momentum in bookings. Those factors support the bullish side of the stock’s investment case.
The issue is valuation. RCL already reflects much of that strength, while debt, capital spending and regional disruption keep the risk-reward profile balanced.
RCL Raises Its 2026 Earnings Expectations
Royal Caribbean now expects adjusted earnings per share of $17.73-$17.87 for 2026. That implies expected year-over-year growth of 14%, supported by stronger second-quarter performance and a better outlook for the balance of the year.
Royal Caribbean Cruises Ltd. Price and Consensus
Revenues are expected to grow 9% in 2026. Capacity is projected to increase 6.6%, while constant-currency net yields are expected to rise 1.75-2.25%.
Royal Caribbean Delivers Another Earnings Beat
Second-quarter adjusted earnings were $4.21 per share, beating the Zacks Consensus Estimate by 6.1%. Revenues of $4.83 billion topped expectations by 0.5%.
Close-in demand was better than expected, particularly in the Caribbean. Lower-than-expected costs and favorable joint-venture performance also helped the company exceed guidance.
RCL Trades Above Key Industry Valuations
RCL trades at 4.23X forward 12-month sales, above the Zacks sub-industry’s 2.74X. That premium leaves less room for disappointment.
The $339 price target is based on a 4.44X forward sales multiple. Against the reported share price of $322.50, that points to only moderate upside.
Carnival Corporation Ltd. CCL and Norwegian Cruise Line Holdings Ltd. NCLH remain useful peer references for investors comparing cruise demand, fuel exposure and balance-sheet repair across the industry. RCL’s premium multiple suggests investors are already assigning it credit for stronger execution.
Royal Caribbean Faces Margin and Cost Pressure
The second quarter was not clean across every line item. Net income attributable to Royal Caribbean fell 6.8% year over year, adjusted net income declined 6% and adjusted EBITDA slipped 1.1%.
Adjusted EBITDA margin contracted to 37.9% from 40.8%. Payroll and fuel expenses increased, and 2026 capital expenditures are expected to be approximately $4.7 billion, keeping the business capital intensive.
RCL Carries Material Financial Commitments
Royal Caribbean ended the second quarter with total debt of $23.4 billion. Scheduled debt maturities include $2.7 billion in 2027 and $3.4 billion in 2028.
The company also had approximately $12.8 billion of remaining contractual ship purchase obligations. These commitments are balanced by $6.9 billion of liquidity, improving operating cash flow and leverage below three times.
RCL’s Scores Support Patience Over Aggressive Buying
The bottom line is that RCL looks like a stronger company than a straightforward bargain. Earnings expectations are rising, demand remains durable and the stock has momentum, but valuation and execution risks argue against aggressive buying at current levels.
The stock currently carries a Zacks Rank #3 (Hold). That rank fits a mixed setup where positive estimate activity and business momentum are offset by premium valuation and sizable financial commitments.
RCL has a Momentum Score of A and a VGM Score of B, reflecting favorable price strength and a balanced overall style profile. Its Value Score of C and Growth Score of C temper the bullish case, suggesting investors may be better served by patience than chasing the stock after its run.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is RCL Stock Worth Buying After Its Strong 2026 Earnings Outlook?

Royal Caribbean Cruises Ltd. RCL is pairing record pricing with a broader vacation platform built around ships, destinations, loyalty and technology.
The central question for investors is whether these initiatives can widen RCL’s addressable market while supporting earnings growth and cash generation through a heavy investment cycle.
Royal Caribbean Demand Holds at Record Pricing
In the second quarter of 2026, capacity increased 5% year over year, and Royal Caribbean carried nearly 2.4 million guests. Constant-currency net yields rose 1.2%, coming in ahead of guidance.
Close-in demand was better than expected, led by Caribbean products and onboard revenue. RCL’s 2026 booked position remains in line with prior years at record pricing, while early 2027 bookings are pacing ahead of historical levels.
Royal Caribbean Cruises Ltd. Price and Consensus
RCL Expands Its Fleet and Vacation Portfolio
Fleet expansion remains a core growth lever. Royal Caribbean took delivery of Legend of the Seas in the second quarter, adding another Icon-class platform to its portfolio.
The orderbook includes additional Icon-class, Oasis-class and Discovery-class ships. Capacity is expected to rise 6.6% in 2026, followed by 4%, 6% and 7% in 2027, 2028 and 2029, respectively, giving RCL a measured expansion runway.
Newer ships support premium pricing, onboard spending and repeat travel by adding differentiated experiences. Carnival Corporation Ltd. CCL and Norwegian Cruise Line Holdings Ltd. NCLH also compete for vacation spending, making product distinction an important part of the cruise investment debate.
Royal Caribbean Builds a Private Destination Edge
Royal Caribbean plans to expand its private destination portfolio from three locations to eight by 2028. These assets are becoming a larger part of its effort to control more of the vacation experience.
Perfect Day is expected to draw nearly four million guests in 2026, while Royal Beach Club Nassau has become the company’s highest-rated Bahamas experience. Private destinations can help RCL differentiate itineraries, retain more guest spending and connect ship and shore experiences under one ecosystem.
RCL Adds River Cruises to Its Growth Platform
Celebrity River Cruises gives Royal Caribbean another vacation occasion rather than a replacement for ocean cruising. Management has described river cruising as incremental to its existing platform.
The first vessels, Celebrity Compass and Celebrity Seeker, are scheduled for delivery in 2027, followed by additional ships in 2028. RCL can use its distribution, loyalty infrastructure and customer data to market these trips to existing Celebrity and Royal Caribbean guests.
Royal Caribbean Targets Higher Earnings and Cash Flow
Royal Caribbean expects 2026 revenues to grow 9%, supported by capacity growth and constant-currency net yield gains. Adjusted earnings per share are projected to rise 14% year over year to $17.73-$17.87.
The company ended the second quarter with $6.9 billion of liquidity, while leverage was below three times. RCL also returned more than $600 million to shareholders during the quarter through dividends and share repurchases.
Still, execution discipline matters. Capital expenditures are expected to be approximately $4.7 billion in 2026, mainly tied to the new ship orderbook and land-based destination initiatives.
RCL Signals Balanced Growth With a Hold Rating
Royal Caribbean has several visible growth drivers, including record pricing, private destinations, newer ships, digital engagement and river cruising. The offset is that major fleet and destination investments require careful timing, cost control and demand resilience.
The stock currently carries a Zacks Rank #3 (Hold). That rank points to a balanced near-term setup, with strong operating momentum weighed against execution risks and recent estimate movement.
RCL has a Momentum Score of A and a VGM Score of B, signaling favorable share-price and combined style characteristics. Its Value Score of C and Growth Score of C suggest a more neutral profile on those individual measures, keeping the overall investment case balanced rather than one-sided.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Royal Caribbean Growth Drivers Investors Should Watch Through 2028

The NASDAQ 100 After Hours Indicator is up 30.88 to 27,794.02. The total After hours volume is currently 165,496,136 shares traded.
The following are the most active stocks for the after hours session:
NVIDIA Corporation (NVDA) is +0.24 at $197.25, with 7,590,624 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Jul 2026. The consensus EPS forecast is $2.01. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Applied Digital Corporation (APLD) is +0.08 at $26.70, with 7,444,102 shares traded. As reported by Zacks, the current mean recommendation for APLD is in the "buy range".
IREN Limited (IREN) is +0.14 at $34.07, with 5,947,285 shares traded. As reported by Zacks, the current mean recommendation for IREN is in the "buy range".
Apple Inc. (AAPL) is +0.03 at $340.11, with 5,389,404 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2026. The consensus EPS forecast is $2.95. AAPL is scheduled to provide an earnings report on 7/30/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 1.88 per share, which represents a 157 percent increase over the EPS one Year Ago
Intel Corporation (INTC) is +0.48 at $86.78, with 4,759,620 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Dec 2026. The consensus EPS forecast is $0.19. INTC's current last sale is 75.46% of the target price of $115.
Amazon.com, Inc. (AMZN) is -0.16 at $230.70, with 4,726,427 shares traded.AMZN is scheduled to provide an earnings report on 7/30/2026, for the fiscal quarter ending Jun2026. The consensus earnings per share forecast is 1.81 per share, which represents a 168 percent increase over the EPS one Year Ago
Kinder Morgan, Inc. (KMI) is unchanged at $31.61, with 4,715,234 shares traded. KMI's current last sale is 87.81% of the target price of $36.
Ford Motor Company (F) is +1.2 at $16.16, with 4,107,636 shares traded. Smarter Analyst Reports: Ford Plans Reorganization into EV and ICE Business Units – Report
Wells Fargo & Company (WFC) is -0.0609 at $86.81, with 2,822,878 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $1.84. As reported by Zacks, the current mean recommendation for WFC is in the "buy range".
Carnival Corporation Ltd. (CCL) is +0.04 at $28.27, with 2,682,654 shares traded. As reported by Zacks, the current mean recommendation for CCL is in the "buy range".
AT&T Inc. (T) is +0.0055 at $24.67, with 2,443,665 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2026. The consensus EPS forecast is $0.62. As reported by Zacks, the current mean recommendation for T is in the "buy range".
Bloom Energy Corporation (BE) is +22.01 at $188.85, with 2,299,289 shares traded. BE's current last sale is 66.26% of the target price of $285.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After Hours Most Active for Jul 28, 2026 : NVDA, APLD, IREN, AAPL, INTC, AMZN, KMI, F, WFC, CCL, T, BE

In trading on Tuesday, shares of Carnival Corporation Ltd (Symbol: CCL) crossed above their 200 day moving average of $27.97, changing hands as high as $28.31 per share. Carnival Corporation Ltd shares are currently trading up about 3.6% on the day. The chart below shows the one year performance of CCL shares, versus its 200 day moving average:
Looking at the chart above, CCL's low point in its 52 week range is $23.45 per share, with $34.03 as the 52 week high point — that compares with a last trade of $28.09. The CCL DMA information above was sourced from TechnicalAnalysisChannel.com
Click here to find out which 9 other dividend stocks recently crossed above their 200 day moving average »
Further CCL Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Carnival (CCL) Shares Cross Above 200 DMA

The S&P 500 Index ($SPX) (SPY) on Monday closed up +0.02%, the Dow Jones Industrial Average ($DOWI) (DIA) closed up +0.51%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.32%. September E-mini S&P futures (ESU26) rose +0.02%, and September E-mini Nasdaq futures (NQU26) fell -0.33%.
Stock indexes settled mixed on Monday, with the Dow Jones Industrial Average posting a 1-week high and the Nasdaq 100 falling to a 2.5-month low. The weakness in chipmakers and AI-infrastructure stocks on Monday weighed on the Nasdaq 100 and limited gains in the broader market. Investors rotated out of semiconductor and AI-infrastructure stocks on Monday and into beaten-down sectors, such as software.
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Stocks initially jumped on Monday after the US and Iran held off on attacks for a third straight day, easing geopolitical risks, pushing crude oil prices sharply lower, and helping lift global stock and bond markets. On Sunday, Mike Waltz, US ambassador to the United Nations, said the US is giving diplomacy “some space.” The plunge in crude oil prices on Monday knocked the 10-year T-note yield down -4 bp to 4.64%.
Monday’s US economic news showed strength in the economy and is supportive of stocks after US Jun capital goods new orders nondefense ex-aircraft, a proxy for capital spending, rose +0.9% m/m, stronger than expectations of +0.7% m/m.
Sep WTI crude oil prices (CLU26) plunged by more than -7% on Monday as tensions eased in the Middle East after the US held off against further airstrikes on Iran for a third straight day and Iran signaled it was refraining from any retaliation as it held negotiations with Oman over the Strait of Hormuz.
However, tensions remain high in the Middle East as the US maintains its blockade of Iranian oil shipments in the Persian Gulf and President Trump raised the possibility of intensified action against Iran. Also, Houthi militants in Yemen claimed to have struck facilities linked to Saudi Aramco in the Red Sea port towns of Jizan and Yanbu on Saturday. Yanbu, the western end of the East-West pipeline, has become Saudi’s key crude export outlet since the Strait of Hormuz has effectively been shut off by the war. Jizan is home to a refinery and export terminal along the Red Sea.
The outlook for strong Q2 earnings, which continue this week, is a bullish factor for stocks. The markets are waiting for results from a raft of megacap technology companies this week, including Amazon.com, Meta Platforms, and Microsoft. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 135 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 38% chance of a +25 bp rate hike at the next FOMC meeting on Tue/Wed.
Overseas stock markets settled higher on Monday. The Euro Stoxx 50 climbed to a 2.5-week high and closed up +0.02%. China's Shanghai Composite closed up +1.15% on Friday. Japan's Nikkei-225 Stock Average closed up +0.50%.
Interest Rates
September 10-year T-notes (ZNU6) on Monday closed up +8 ticks. The 10-year T-note yield fell -3.6 bp to 4.641%. T-notes moved higher amid Monday’s -7% plunge in crude oil prices, which eased inflation expectations. The 10-year breakeven inflation rate fell to a 1-month low of 2.201% on Monday. Weak demand for the Treasury’s $70 billion auction of 5-year T-notes limited gains in T-notes as the auction had a bid-to-cover ratio of 2.28, below the 10-auction average of 2.35 and the lowest in 3.75 years.
European government bond yields moved lower on Monday. The 10-year German bund yield fell -3.9 bp to 3.133%. The 10-year UK gilt yield fell -3.5 bp to 4.997%.
The German Jul IFO business confidence index rose +0.9 to a 5-month high of 86.6, stronger than expectations of 86.0.
ECB Governing Council member Peter Kazimir said "he remains of the view that the ECB will have to raise interest rates at least one more time" to ensure that inflation risks don't spin out of control.
The markets are discounting an 88% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated on Monday, weighing on the broader market. The iShares Semiconductor ETF (SOXX) fell to a 1-week low and closed down more than -2%. Sandisk (SNDK) closed down more than -12% to lead losers in the S&P 500 and Nasdaq 100, and Advanced Micro Devices (AMD) and ASML Holding NV (ASML) closed down more than -5%. Also, Western Digital (WDC), Lam Research (LRCX), and Seagate Technology Holdings Plc (STX) closed down more than -4%, and Micron Technology (MU), Applied Materials (AMAT), and KLA Corp (KLAC) closed down more than -3%. In addition, Marvell Technology (MRVL) closed down more than -2%.
Energy producers and service providers moved lower on Monday amid the -7% decline in crude oil prices. Devon Energy (DVN), Diamondback Energy (FANG), and Occidental Petroleum (OXY) closed down more than -4%, and APA Corp (APA), ConocoPhillips (COP), and Haliburton (HAL) closed down more than -3%. Also, Chevron (CVX) closed down more than -2%, and ExxonMobil Holdings (XOM) and SLB Ltd (SLB) closed down more than -1%.
Software stocks rallied on Monday, a supportive factor for the overall market. Atlassian (TEAM) closed up more than +10%, and Workday (WDAY) closed up more than +9% to lead gainers in the S&P 500. Also, Thomson Reuters (TRI) closed up more than +8%, and Autodesk (ADSK) and Palantir Technologies (PLTR) closed up more than +7%. In addition, ServiceNow (NOW) closed up more than +6%, and Salesforce (CRM) closed up more than +6% to lead gainers in the Dow Jones Industrials. Finally, Adobe (ADBE) closed up more than +5%, Oracle (ORCL) closed up more than +4%, Intuit (INTU) and Datadog (DDOG) closed up by more than +2%, and Microsoft (MSFT) closed up by more than +1%.
Airline stocks and cruise line operators moved higher on Monday after crude oil prices plunged more than -7%. American Airlines Group (AAL), Carnival (CCL), Norwegian Cruise Line Holdings (NCLH), and Royal Caribbean Cruises (RCL) closed up more than +3%, and Alaska Air Group (ALK) closed up more than +2%. Also, United Airlines Holdings (UAL) and Delta Air Lines (DAL) closed up more than +1%, and Southwest Airlines (LUV) closed up +0.67%.
CH Robinson Worldwide (CHRW) closed down more than -6%, adding to last Friday’s -9% plunge, to lead trucking and freight companies lower after a Dallas jury awarded $604 million in compensatory damages against the company and two other defendants for a verdict related to a trucking accident. Also, FedEx Freight Holding Company (FDXF) and Marten Transport (MRTN) closed down more than -4%, and Arcbest (ARCB) closed down more than -3%. In addition, Old Dominion Freight Line (ODFL), Knight-Swift Transportation (KNX), JB Hunt Transport (JBHT), and XPO Inc (XPO) closed down more than -2%.
MapLight Therapeutics (MPLT) closed down more than -71% after posting results from a mid-stage trial of its experimental therapy to treat schizophrenia, which Stifel said did not meet the “upside case” scenario.
Nvidia (NVDA) closed down more than -4% to lead losers in the Dow Jones Industrials after announcing it had made a “substantial” investment in AI startup Safe Superintelligence.
Forte Biosciences (FBRX) closed up more than +39% after Argenx SE agreed to buy the company for about $2.2 billion, or $77 a share.
D-Wave Quantum (QBTS) closed up more than +20% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $30.
IonQ (IONQ) closed up more than +9% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $60.
Baker Hughes (BKR) closed up more than +6% after reporting Q2 revenue of $6.74 billion, better than the consensus of $6.51 billion.
Rocket Lab Corp. (RKLB) closed up more than +4% after KGI Securities upgraded the stock to outperform from neutral with a price target of $107.
Earnings Reports (7/28/2026)
American Tower Corp (AMT), Arch Capital Group Ltd (ACGL), Armstrong World Industries Inc (AWI), Avis Budget Group Inc (CAR), Axalta Coating Systems Ltd (AXTA), Axis Capital Holdings Ltd (AXS), Bloom Energy Corp (BE), Boeing Co/The (BA), BXP Inc (BXP), Caesars Entertainment Inc (CZR), Carrier Global Corp (CARR), Centene Corp (CNC), CenterPoint Energy Inc (CNP), Chemed Corp (CHE), CMS Energy Corp (CMS), Coca-Cola Co/The (KO), Corning Inc (GLW), CoStar Group Inc (CSGP), Crane Co (CR), DTE Energy Co (DTE), Ecolab Inc (ECL), Enphase Energy Inc (ENPH), ExlService Holdings Inc (EXLS), Expand Energy Corp (EXE), Extra Space Storage Inc (EXR), FirstEnergy Corp (FE), Ford Motor Co (F), HF Sinclair Corp (DINO), Hilton Worldwide Holdings Inc (HLT), Hubbell Inc (HUBB), Illinois Tool Works Inc (ITW), Incyte Corp (INCY), Invesco Ltd (IVZ), IQVIA Holdings Inc (IQV), KLA Corp (KLAC), Landstar System Inc (LSTR), Liberty Live Holdings Inc (LLYVA), Manhattan Associates Inc (MANH), Mondelez International Inc (MDLZ), NOV Inc (NOV), NXP Semiconductors NV (NXPI), Omnicom Group Inc (OMC), Oshkosh Corp (OSK), PACCAR Inc (PCAR), PayPal Holdings Inc (PYPL), Pentair PLC (PNR), PPG Industries Inc (PPG), Qorvo Inc (QRVO), Repligen Corp (RGEN), Rithm Capital Corp (RITM), Royal Caribbean Cruises Ltd (RCL), S&P Global Inc (SPGI), Seagate Technology Holdings PL (STX), Sherwin-Williams Co/The (SHW), Skyworks Solutions Inc (SWKS), STAG Industrial Inc (STAG), Teradyne Inc (TER), Textron Inc (TXT), TransUnion (TRU), United Parcel Service Inc (UPS), Unum Group (UNM), Veralto Corp (VLTO), Visa Inc (V), WP Carey Inc (WPC), Xylem Inc/NY (XYL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Settle Mixed as AI Angst Offsets Easing Geopolitical Tensions

Key Points
Norwegian Cruise Line shares have pulled back, largely on the impact of Mideast tensions on fuel costs and passenger demand.
That's not to say Norwegian will again disappoint when it next reports quarterly results this week, but shares in competitor Carnival may represent a stronger long-term opportunity.
Similarly priced but with lower leverage and a 1.7% dividend, Carnival may beat out Norwegian Cruise Line when it comes to risk/reward proposition.
Over the past 12 months, shares in cruise line operator Norwegian Cruise Line (NYSE: NCLH) have fallen by nearly 19%. As has been the case with other cruise ship stocks, concerns about the impact of Mideast geopolitical tensions on fuel prices and passenger demand played a big part in these declines.
Later this week, Norwegian Cruise Line reports its latest quarterly results. However, whether the results are strong or weak, I believe there is a much stronger long-term opportunity in this sector than Norwegian.
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Norwegian Cruise Line reports results for the June quarter pre-market on July 30. Sell-side estimates call for earnings of $0.39 per share, or around a 23.5% decrease from the prior year's quarter. Already aware of forecast declines, investors likely will pay greater attention to guidance updates.
Last quarter, again due to the Mideast conflict, Norwegian's management walked back its full-year 2026 forecast, anticipating earnings between $1.45 and $1.79 per share, a far cry from prior guidance, which called for full-year earnings as much as $2.38 per share. Still, even a slight adjustment, such as tightening the earnings range, could have a strong positive impact on sentiment toward the stock.
Although there could be a post-earnings rally, if the latest numbers prove better than anticipated, I would still skip Norwegian shares.
Trading for around 11 times forward earnings, it trades at a steep discount to competitor Royal Caribbean Cruises (NYSE: RCL), which trades for 17 times forward earnings. However, you can also pick up Carnival (NYSE: CCL) at a similar forward multiple as Norwegian. Not only that, Carnival is far less levered and currently pays a dividend, with a forward yield of around 1.7%.
Simply put, Carnival Cruise Lines stock represents a stronger risk/reward proposition and hence should be considered a contender for those bullish on the cruise line industry in the long term.
Should you buy stock in Norwegian Cruise Line right now?
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Thomas Niel has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Norwegian Cruise Line Is Down 19% This Year and Reports Earnings July 30. Is Now the Time to Buy?

The S&P 500 Index ($SPX) (SPY) today is up +0.11%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.54%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.46%. September E-mini S&P futures (ESU26) are up +0.11%, and September E-mini Nasdaq futures (NQU26) are down +0.40%.
Stock indexes gave up early gains today and are trading mixed, with the Nasdaq 100 falling to a 2.5-month low. The weakness in chipmakers is weighing on the broader market as investors rotate out of semiconductor and AI-infrastructure stocks and into beaten-down sectors, such as software.
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Stocks initially jumped today, with the Dow Jones Industrial Average posting a 1-week high after the US and Iran held off attacks on one another for a third straight day, easing geopolitical risks, pushing crude oil prices down sharply, and helping lift global stock and bond markets. On Sunday, Mike Waltz, US ambassador to the United Nations, said the US is giving diplomacy “some space.” The plunge in crude oil prices today has knocked the 10-year T-note yield down -3 bp to 4.65%.
Today’s US economic news shows strength in the economy and is supportive of stocks after US Jun capital goods new orders, nondefense ex-aircraft, rose +0.9% m/m, stronger than expectations of +0.7% m/m.
Sep WTI crude oil prices (CLU26) are down more than -6% today, as tensions eased in the Middle East after the US held off against further airstrikes on Iran for a third straight day and Iran signaled it was refraining from any retaliation as it held negotiations with Oman over the Strait of Hormuz.
However, tensions remain high in the Middle East as President Trump has raised the possibility of intensified action against Iran. Also, Houthi militants in Yemen claimed to have struck facilities linked to Saudi Aramco in the Red Sea port towns of Jizan and Yanbu on Saturday. Yanbu, the western end of the East-West pipeline, has become Saudi’s key crude export outlet since the Strait of Hormuz has effectively been shut off by the war. Jizan is home to a refinery and export terminal along the Red Sea.
The outlook for strong Q2 earnings, which continue this week, is a bullish factor for stocks. The markets are waiting for results from a raft of megacap technology companies this week, including Amazon.com, Meta Platforms, and Microsoft. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 135 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 38% chance of a +25 bp rate hike at the next FOMC meeting on Tue/Wed.
Overseas stock markets are higher today. The Euro Stoxx 50 climbed to a 2.5-week high and is up +0.39%. China's Shanghai Composite closed up +1.15% on Friday. Japan's Nikkei-225 Stock Average closed up +0.50%.
Interest Rates
September 10-year T-notes (ZNU6) today are up +5 ticks. The 10-year T-note yield is down -2.4 bp to 4.653%. T-notes are moving higher amid today’s -6% plunge in crude oil prices, which eases inflation expectations. The 10-year breakeven inflation rate fell to a 3-week low of 2.221% today. Supply pressures are limiting the upside in T-notes as the Treasury will auction $183 billion of T-notes today and tomorrow, beginning with a $69 billion auction of 2-year T-notes and a $70 billion auction of 5-year T-notes later today.
European government bond yields are moving lower today. The 10-year German bund yield is down -4.6 bp to 3.126%. The 10-year UK gilt yield is down -4.9 bp to 4.983%.
The German Jul IFO business confidence index rose +0.9 to a 5-month high of 86.6, stronger than expectations of 86.0.
ECB Governing Council member Peter Kazimir said "he remains of the view that the ECB will have to raise interest rates at least one more time" to ensure that inflation risks don't spin out of control.
The markets are discounting an 89% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Chipmakers and AI-infrastructure stocks are falling today, weighing on the broader market. The iShares Semiconductor ETF (SOXX) is down more than -3% at a 1-week low. Sandisk (SNDK) is down more than -11% to lead losers in the S&P 500 and Nasdaq 100, and Advanced Micro Devices (AMD) and Western Digital (WDC) are down more than -6%. Also, Lam Research (LRCX), ASML Holding NV (ASML), Micron Technology (MU), Applied Materials (AMAT), and Seagate Technology Holdings Plc (STX) are down more than -5%, and KLA Corp (KLAC) is down more than -4%. In addition, Marvell Technology (MRVL) is down more than -3%, and Intel (INTC) and Microchip Technology (MCHP) are down more than -2%.
Energy producers and service providers are sliding today amid the -6% decline in crude oil prices. ConocoPhillips (COP), Devon Energy (DVN), Diamondback Energy (FANG), and Occidental Petroleum (OXY) are down more than -2%. Also, Haliburton (HAL), APA Corp (APA), ExxonMobil Holdings (XOM), and Chevron (CVX) are down more than -1%.
MapLight Therapeutics (MPLT) is down more than -64% after posting results from a mid-stage trial of its experimental therapy to treat schizophrenia, which Stifel said did not meet the “upside case” scenario.
Nvidia (NVDA) is down more than -4% to lead losers in the Dow Jones Industrials after announcing it had made a “substantial” investment in AI startup Safe Superintelligence.
Software stocks are rallying today, a supportive factor for the overall market. Workday (WDAY) is up more than +8% to lead gainers in the S&P 500 and Nasdaq 100, and Atlassian (TEAM) is up more than +7%. Also, Autodesk (ADSK) and Oracle (ORCL) are up more than +5%, and Salesforce (CRM) is up more than +4% to lead gainers in the Dow Jones Industrials. In addition, Adobe (ADBE) is up more than +4%, and ServiceNow (NOW), Palantir Technologies (PLTR), and Intuit (INTU) are up more than +3%. Finally, Microsoft (MSFT) is up by more than +2%, and Datadog (DDOG) is up by more than +1%.
Airline stocks and cruise line operators are climbing today with the -6% plunge in crude oil prices. Alaska Air Group (ALK), Carnival (CCL), and Norwegian Cruise Line Holdings (NCLH) are up more than +2%. Also, United Airlines Holdings (UAL), American Airlines Group (AAL), and Delta Air Lines (DAL) are up more than +1%. Also, Southwest Airlines (LUV) is up +0.53%.
Forte Biosciences (FBRX) is up more than +39% after Argenx SE agreed to buy the company for about $2.2 billion, or $77 a share.
D-Wave Quantum (QBTS) is up more than +16% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $30.
IonQ (IONQ) is up more than +7% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $60.
Baker Hughes (BKR) is up more than +6% after reporting Q2 revenue of $6.74 billion, better than the consensus of $6.51 billion.
Rocket Lab Corp. (RKLB) is up more than +2% after KGI Securities upgraded the stock to outperform from neutral with a price target of $107.
Earnings Reports (7/27/2026)
Rambus Inc (RMBS), Welltower Inc (WELL), Kilroy Realty Corp (KRC), Brown & Brown Inc (BRO), Principal Financial Group Inc (PFG), UDR Inc (UDR), Sanmina Corp (SANM), Nucor Corp (NUE), Sun Communities Inc (SUI), Universal Health Services Inc (UHS), Amkor Technology Inc (AMKR), F5 Inc (FFIV), Cincinnati Financial Corp (CINF), Element Solutions Inc (ESI), Applied Digital Corp (APLD), Cadence Design Systems Inc (CDNS), Brixmor Property Group Inc (BRX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Fall from Early Highs as Chipmakers Retreat

The S&P 500 Index ($SPX) (SPY) today is up +0.65%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +1.08%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.56%. September E-mini S&P futures (ESU26) are up +0.65%, and September E-mini Nasdaq futures (NQU26) are up +0.60%.
Stock indexes are moving higher today, with the Dow Jones Industrial Average posting a 1-week high after the US and Iran held off attacks on one another for a third straight day, easing geopolitical risks, pushing crude oil prices down sharply, and helping lift global stock and bond markets. On Sunday, Mike Waltz, US ambassador to the United Nations, said the US is giving diplomacy “some space.” Stocks tied to the global buildout of artificial intelligence, from chipmakers to electrical equipment manufacturers, are leading the broader market higher today. The plunge in crude oil prices today has knocked the 10-year T-note yield down -3 bp to 4.65%.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
Today’s US economic news shows strength in the economy and is supportive for stocks after US Jun capital goods new orders nondefense ex-aircraft, and parts rose +0.9% m/m, stronger than expectations of +0.7% m/m.
Sep WTI crude oil prices (CLU26) are down more than -5% today, as tensions eased in the Middle East after the US held off against further airstrikes on Iran for a third straight day and Iran signaled it was refraining from any retaliation as it held negotiations with Oman over the Strait of Hormuz.
However, tensions remain high in the Middle East as President Trump has raised the possibility of intensified action against Iran. Also, Houthi militants in Yemen claimed to have struck facilities linked to Saudi Aramco in the Red Sea port towns of Jizan and Yanbu on Saturday. Yanbu, the western end of the East-West pipeline, has become Saudi’s key crude export outlet since the Strait of Hormuz has effectively been shut off by the war. Jizan is home to a refinery and export terminal along the Red Sea.
The outlook for strong Q2 earnings, which continue this week, is a bullish factor for stocks. The markets are waiting for results from a raft of megacap technology companies this week, including Amazon.com, Meta Platforms, and Microsoft. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 135 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 34% chance of a +25 bp rate hike at the next FOMC meeting on Tue/Wed.
Overseas stock markets are higher today. The Euro Stoxx 50 climbed to a 2.5-week high and is up +1.12%. China's Shanghai Composite closed up +1.15% on Friday. Japan's Nikkei-225 Stock Average closed up +0.50%.
Interest Rates
September 10-year T-notes (ZNU6) today are up +6 ticks. The 10-year T-note yield is down -2.6 bp to 4.651%. T-notes are moving higher amid today’s -6% plunge in crude oil prices, which eases inflation expectations. Supply pressures are limiting the upside in T-notes as the Treasury will auction $183 billion of T-notes today and tomorrow, beginning with a $69 billion auction of 2-year T-notes and a $70 billion auction of 5-year T-notes later today.
European government bond yields are moving lower today. The 10-year German bund yield is down -3.8 bp to 3.134%. The 10-year UK gilt yield is down -3.9 bp to 4.993%.
The German Jul IFO business confidence index rose +0.9 to a 5-month high of 86.6, stronger than expectations of 86.0.
ECB Governing Council member Peter Kazimir said "he remains of the view that the ECB will have to raise interest rates at least one more time" to ensure that inflation risks don't spin out of control.
The markets are discounting an 88% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Software stocks are rallying today, a supportive factor for the overall market. Atlassian (TEAM) and Workday (WDAY) are up more than +6%, and Oracle (ORCL) is up more than +5%. Also, ServiceNow (NOW), Palantir Technologies (PLTR), Salesforce (CRM), Adobe (ADBE), and Datadog (DDOG) are up more than +3%. In addition, Microsoft (MSFT) and Intuit (INTU) are up more than +2%.
Airline stocks and cruise line operators are climbing today with the plunge in crude oil prices. Alaska Air Group (ALK) and Carnival (CCL) are up more than +4%, and United Airlines Holdings (UAL) and Norwegian Cruise Line Holdings (NCLH) are up more than +3%. Also, American Airlines Group (AAL), Delta Air Lines (DAL), Southwest Airlines (LUV), and Royal Caribbean Cruises (RCL) are up more than +2%.
Energy producers and service providers are sliding today, with the -5% plunge in crude oil prices. ConocoPhillips (COP), ExxonMobil Holdings (XOM), Devon Energy (DVN), and Diamondback Energy (FANG) are down more than -2%. Also, Haliburton (HAL), APA Corp (APA), and Chevron (CVX) are down more than -1%.
Forte Biosciences (FBRX) is up more than +39% after Argenx SE agreed to buy the company for about $2.2 billion, or $77 a share.
D-Wave Quantum (QBTS) is up more than +16% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $30.
IonQ (IONQ) is up more than +12% after Benchmark Company LLC reinstated coverage on the stock with a recommendation of buy and a price target of $60.
Baker Hughes (BKR) is up more than +8% to lead gainers in the S&P 500 and Nasdaq 100 after reporting Q2 revenue of $6.74 billion, better than the consensus of $6.51 billion.
Mobileye Global (MBLY) is up more than +9% after Piper Sandler upgraded the stock to overweight from neutral with a price target of $12.
Rocket Lab Corp. (RKLB) is up more than +6% after KGI Securities upgraded the stock to outperform from neutral with a price target of $107.
MapLight Therapeutics (MPLT) is down more than -66% after posting results from a mid-stage trial of its experimental therapy to treat schizophrenia, which Stifel said did not meet the “upside case” scenario.
Nvidia (NVDA) is down more than -2% to lead losers in the Dow Jones Industrials after announcing it had made a “substantial” investment in AI startup Safe Superintelligence.
Earnings Reports (7/27/2026)
Rambus Inc (RMBS), Welltower Inc (WELL), Kilroy Realty Corp (KRC), Brown & Brown Inc (BRO), Principal Financial Group Inc (PFG), UDR Inc (UDR), Sanmina Corp (SANM), Nucor Corp (NUE), Sun Communities Inc (SUI), Universal Health Services Inc (UHS), Amkor Technology Inc (AMKR), F5 Inc (FFIV), Cincinnati Financial Corp (CINF), Element Solutions Inc (ESI), Applied Digital Corp (APLD), Cadence Design Systems Inc (CDNS), Brixmor Property Group Inc (BRX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Rally as Middle East Tensions Ease

Norwegian Cruise Line Holdings Ltd. NCLH is scheduled to report second-quarter 2026 results on July 30, before the opening bell. In the last reported quarter, the company registered an earnings surprise of 53.3%.
NCLH’s Estimates Revisions
The Zacks Consensus Estimate for second-quarter adjusted earnings is pegged at 39 cents per share, indicating a year-over-year decline of 23.5%. In the past 30 days, earnings estimates for the current quarter have been stable. For revenues, the consensus mark is pegged at $2.63 billion, implying a 4.4% year-over-year increase.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Norwegian Cruise this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is exactly the case here.
Earnings ESP: Norwegian Cruise has an Earnings ESP of +2.72%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Norwegian Cruise Line Holdings Ltd. Price and EPS Surprise
What’s Shaping NCLH’s Q2 Results?
Norwegian Cruise Line's top line in the second quarter of 2026 is likely to have benefited from sustained demand for its premium cruise offerings and the overall resilience of the cruise industry. Management highlighted that cruise vacations continue to attract both repeat and first-time travelers, supported by healthy industry fundamentals and record passenger volumes. The company also emphasized the strength of its luxury brands, Regent Seven Seas Cruises and Oceania Cruises, which continued to perform in line with expectations despite broader market challenges. These premium brands are likely to have supported revenues through stronger pricing and a more resilient customer base.
Another contributor to revenue is expected to have been the continued expansion of the fleet and investments in guest experiences. Capacity days are projected to have increased as the company takes delivery of new ships, providing additional opportunities to generate ticket and onboard revenues. The recently christened Norwegian Luna and enhancements at Great Stirrup Cay, including the upcoming Great Tides Waterpark, are expected to have improved the vacation experience and strengthened the appeal of Caribbean itineraries.
Management also noted that guest satisfaction at the private island has improved significantly following the first phase of upgrades, while higher onboard spending trends indicate guests continue to spend once aboard. These factors are likely to have supported overall revenue generation.
NCLH's top line might also have received support from initiatives aimed at strengthening commercial execution. The company has rolled out the first phase of a new revenue management system, has been rebuilding its marketing organization and has begun promoting its upgraded private island more aggressively to stimulate demand. In addition, management expects the opening of the Great Tides Waterpark to enhance itinerary attractiveness and improve booking momentum over time. While these initiatives are still in the early stages, they are intended to improve occupancy, pricing and revenue performance as the year progresses.
For the quarter under review, our model predicts Passenger Ticket and Onboard and Other revenues to increase 2.9% and 7.6% to $1,663.8 million and $869.6 million, respectively, on a year-over-year basis. Our model predicts the number of passengers carried in the second quarter of 2026 to increase 18.9% year over year.
NCLH's bottom line in the second quarter is likely to have faced pressure from higher operating expenses stemming from external disruptions. Management cited the Middle East conflict as a source of increased fuel costs, higher crew transportation expenses and elevated logistics costs. At the same time, softer booking trends in Europe and weaker close-in demand limited revenue growth, reducing the company's ability to absorb these higher costs. Although cost-saving initiatives helped offset part of the pressure, the combination of elevated fuel expenses and war-related operating costs is likely to have weighed on profitability during the quarter.
Price Performance & Valuation
NCLH’s shares have declined 18.9% in the past year, underperforming the Zacks Leisure and Recreation Services industry and the S&P 500. The stock has also underperformed other major industry players like Carnival Corporation & plc CCL, Royal Caribbean Cruises Ltd. RCL and OneSpaWorld Holdings Limited OSW in the same time frame.
Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, NCLH is trading relatively cheaply. The company has a forward 12-month price-to-earnings of 10.25X, below the industry average.
P/E (F12M)
Image Source: Zacks Investment Research
Investment Considerations
Despite favorable long-term industry fundamentals and Norwegian Cruise's ongoing investments in fleet expansion, destination enhancements and commercial initiatives, investors may be better off holding the stock rather than buying ahead of the second-quarter earnings release. The company continues to face near-term execution challenges, particularly in rebuilding its marketing and revenue management capabilities, while demand softness in key European markets and higher fuel and operating costs could weigh on quarterly profitability.
Although the stock trades at an attractive valuation and the company has been making progress on cost-control efforts, many of the expected operational improvements are likely to take time to translate into stronger financial performance. Given the uncertainty surrounding the upcoming results and management's turnaround efforts, existing investors should consider holding the stock, while prospective investors may prefer to wait for greater clarity after the earnings announcement before initiating new positions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Norwegian Cruise Q2 Earnings Ahead: Buy, Sell or Hold the Stock?

Key Points
Royal Caribbean reports second-quarter results on Tuesday morning.
Analysts are bracing for a 9% decline in adjusted earnings per share, but guidance will be the stock driver on Tuesday and beyond.
Royal Caribbean trades at a market premium to its rival cruise lines. It needs to prove that it's worth the mark-up this week.
Expectations are low for Royal Caribbean (NYSE: RCL) heading into a critical financial update this week. The country's largest cruise line operator -- by market cap -- is expected to post a modest 6% increase in revenue when it reports its second-quarter results ahead of Tuesday's market open. The bottom line is expected to go the other way.
Royal Caribbean's own guidance three months ago braced investors for contracting margins. Overseas geopolitical tensions would weigh on some of its higher-yielding itineraries. Rising fuel costs are also an obvious headwind, but that's not the only expense percolating. Its guidance for the seasonally potent summertime quarter calls for a 4.9% to 5.4% increase in net cruise costs per available passenger cabin day, and that's excluding the fuel factor.
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The bottom line could be problematic. Royal Caribbean's guidance in late April called for adjusted earnings per share of $3.83 to $3.93 for the quarter it's reporting this week. Analyst per-share estimates are a bit more ambitious at $3.98 a share, and this follows a poorly received report from larger rival Carnival (NYSE: CCL) last month.
Carnival's fiscal year ends a month earlier than Royal Caribbean's, but the latter's second quarter still covers two of the three months that Carnival just reported. Carnival's top-line miss and weak bottom-line guidance hurt the stock. Royal Caribbean will need to buck the trend by offering a reasonable outlook. Don't be surprised if it does exactly that.
Open waters
Royal Caribbean's secret weapon -- the one thing that can prove naysayers wrong this week -- is that it is historically a superior operator than its rivals. Why do you think Royal Caribbean commands the larger market cap and enterprise value despite being a smaller company in terms of revenue and fleet size?
Royal Caribbean has earned its market premium. It has historically posted superior revenue growth and net margin. It was the first of the major ocean liners to return to profitability as well as resume paying quarterly dividends.
Royal Caribbean is cheap, trading for 17 times this year's earnings and less than 15 times next year's target. Carnival may command an even lower forward multiple, but it has also been a relative laggard over long stretches of time. This would be an ideal time to prove Royal Caribbean is worthy of that industry premium.
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Rick Munarriz has positions in Royal Caribbean Cruises. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Carnival Corporation Ltd.

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