We recently compiled a list of the 7 High Growth Travel Services Stocks For 2025. In this article, we are going to take a look at where Carnival Corporation & plc (NYSE:CCL) stands against the other high growth travel services stocks.
The COVID-19 pandemic dealt a severe blow to both cruise and air travel industries. The mere thought of traveling in a closed compartment with people from all over the world scared travelers. Hospitality businesses like hotels and restaurants were less affected but still felt the heat.
Over the last year, the air travel industry has recovered to the pre-pandemic levels. Cruise passengers have grown in numbers for the second successive year in 2024, and are likely to post a record in 2025 as well.
On the back of this recovery, travel services stocks have performed well and are likely to continue performing well in the future. We looked at the top 7 travel services stocks by screening them based on sales growth since the pandemic.
To come up with the list of high-growth travel services stocks, we only considered stocks with a market cap of at least $10 billion and a 5-year sales growth rate of over 20%.
A luxurious cruise ship sailing the deep blue sea, sun glistening off its decks.
Carnival Corporation & plc (NYSE:CCL)
Carnival Corporation & plc operates as a cruise company and offers leisure travel services. It operates in Europe Cruise Operations, NAA Cruise Operations, Tour & Other, and Cruise Support segments. The company owns and manages glass-domed railcars, hotels, motor coaches, and lodges.
CCL was one of the worst-hit stocks during the pandemic when its price fell below the $8.5 level. Since then, the company has cleaned up its balance sheet and on the back of a staggering recovery of the travel industry, has doubled in price in just over a year. This optimism is likely to continue driving the stock up in the future.
According to a research report from JP Morgan, the cruise industry is set to grow by high single digits over the next 5 years. This is because the spending capacity of the average millennial has gone up considerably in the last 5 years. With other cruise lines reporting increased consumer spending aboard its cruises, there is enough evidence for this to place a bet on the stock despite it being near its 52-week highs.
Overall CCL ranks 4th on our list of the high growth travel services stocks for 2025. While we acknowledge the potential of CCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as CCL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
