191.50% in 3 Years: Peconic Hedge Fund’s Top 10 Stock Picks

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5. Carnival Corporation & plc (NYSE:CCL)

Number of Hedge Fund Holders: 56

Carnival Corporation & plc (NYSE:CCL) landed in the 5th spot of Peconic Hedge Fund’s top 10 stock picks. Carnival Corporation & plc (NYSE:CCL) is an international cruise line with a diverse portfolio that includes cruise lines, ports, private islands, and hotels. Carnival Corporation & plc (NYSE:CCL) has struggled to recover from its 2020 lows and continues to have difficulty providing value for investors. Over the past decade, Carnival Corporation & plc (NYSE:CCL) has dropped 51.49% and has also underperformed compared to peers like Royal Caribbean Cruises Ltd. (NYSE:RCL), Expedia Group, Inc. (NASDAQ:EXPE) and Hyatt Hotels Corporation (NYSE:H).

Carnival Corporation & plc (NYSE:CCL)’s revenues grew rapidly in 2023, surpassing guidance, achieving positive adjusted net income for the year, and reducing debt. In Q1 2024, revenue grew by 22% year-on-year despite a challenging comparison to Q1 2023, which had seen a significant revenue spike as cruise travel normalized post-pandemic.

According to Green Growth Giants Analyst, Manika Premsingh, this positive trend is expected to continue into Q2 2024, although revenue growth may soften due to base effects and company projections. Carnival Corporation & plc (NYSE:CCL) recently upgraded its full-year outlook, expecting net yields to rise by 9.5%, up from an earlier forecast of 8.5%.

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