Jim Cramer’s Game Plan for This Week: 8 Stocks in Focus

5. Carnival Corporation & plc (NYSE:CCL)

Number of Hedge Fund Holders: 54

Cramer said that the cruise industry is the most bullish one in the S&P 500 and predicted that Carnival Corporation & plc (NYSE:CCL) will surpass expectations.

“We also get numbers from Carnival. Now Carnival is, this is a cruise line. This has got to be the most bullish industry in the S&P 500 at this moment. Cruises remain the most popular form of travel and leisure activities post-Covid. They’re a great bargain. I think the estimates will be beaten. Right now, you can throw darts at this group and make money. I just booked myself a cruise for next year. Nothing lasts forever, but the love for this group currently knows no bounds.”

Carnival (NYSE:CCL) is a major player in the leisure travel industry, offering cruise services to a global customer base. In 2024, the company has experienced remarkable growth, with record revenues, a surge in demand, and advancements toward its long-term goals. As per the company’s management, the positive trends observed in the third quarter of 2024 are expected to continue into the fourth quarter.

It projects a 5% growth in yield for the fourth quarter, slightly lower than the 8.7% increase reported in the third quarter. Despite this, the company has raised its full-year net income forecast to $1.76 billion, a $210 million increase from previous expectations. This upward revision reflects a 10.4% increase in yield, improved cruise cost per available lower berth day, and a $70 million benefit from favorable fuel prices and currency fluctuations.

Looking ahead, Carnival (NYSE:CCL) plans a modest capacity increase of 0.7% for 2025, while also aiming to boost pricing by managing inventory levels more effectively. With an EBITDA forecast of $6 billion for September 2024, the company expects a significant reduction in its net debt-to-EBITDA ratio.