Carnival Stock In Strong Bullish Trend Ahead Of Q2 Earnings: Why Analyst Sees 'Multiyear Portfolio Opportunity'

Carnival Corp CCL will report second-quarter (Q2) earnings on Tuesday. Wall Street expects -20 cents in EPS and $5.7 billion in revenues as the company reports before market hours.

The stock is up 2.33% over the past year, but down 12.30% YTD.

Let’s look at what the charts indicate for Carnival stock, and how the stock currently maps against Wall Street estimates.

Carnival Stock In Strong Bullish Trend Ahead Of Q2 Earnings 

Based on technical analysis, Carnival stock is exhibiting a strongly bullish trend. The share price of $16.07 is above its 5, 20, and 50-day exponential moving averages, indicating strong buying pressure.

Chart: Benzinga Pro

Specifically, Carnival stock’s 20-day SMA at $16.05 and 50-day SMA at $15.24 both suggest bullishness, supported further by the 200-day SMA of $15.29.

Chart: Benzinga Pro

The Moving Average Convergence Divergence (MACD) indicator at 0.21 also suggests bullish sentiments, as does the Bollinger Bands (20) range of $14.83 to $17.27.

The Relative Strength Index (RSI) at 55.26 is rather neutral, indicating the stock is neither overbought not oversold. However, recent trajectory and current upwards trend indicates the RSI may be moving towards the overbought territory at 70.

Overall, these indicators point towards continued bullish momentum for Carnival stock, with a slight caution due to the overbought RSI.

Also Read: What’s Going On With Carnival’s Stock?

Carnival Stock Analysts’ See Upto 25% Upside

Ratings & Consensus Estimates: The consensus analyst rating on Carnival stock stands at a Buy currently with a price target of $18.78. However, the more recent analyst reviews received May 14 onwards from Truist Securities, Wells Fargo and UBS – suggest an average price target of $20.33 for the stock, indicating a 25.55% potential upside.

JPMorgan has an Overweight rating on the stock and a price target of $21. They see “continued progress on the multi-year portfolio opportunity at CCL.” They see “continued strength in the Carnival brand (~35% of mix), Aida (~12% of mix), and progressive improvement in its European fleet.”

CCL Price Action: Carnival stock was up 2.55%, trading at $16.48 at the time of publication.

Read Next: Carnival Gears Up For Q2 Print; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts