Carnival Corporation continues gains for eight straight sessions

Carnival Corporation (NYSE:CCL) continued gains for an eighth straight session, as the stock closed 1.89% higher at $18.37 on Wednesday.

The Florida-based cruise-operations company gained 12.48% in the preceding seven sessions. The stock has lost about 0.3% so far this year, compared to the over 18% rise in the broader S&P 500 Index.

CCL is up 20% over the past one month. The stock closed 1.12% higher on Tuesday, at $18.03.

According to travel agents surveyed by Morgan Stanley and UBS, sellers continue to see strong demand for cruises with sales volumes up, cancellations down, and pricing higher than it was last year at this time.

In their latest quarterly results, Royal Caribbean Cruises (RCL) and Norwegian Cruise Lines (NCLH), both beat Q2 earnings expectations as strong demand for vacation experiences, including onboard spending, drove revenues higher and boosted guidance.

Analysts are also bullish on the stock. Seeking Alpha’s Quant rating considers the stock a STRONG BUY, giving it a rating of 4.93 out of 5. It has received an A+ in terms of growth and revisions, and B- on valuation.

From the Wall Street Community, 21 out of 28 analysts recommend BUY and above, 5 recommend to hold the stock, while 2 recommend STRONG SELL.

Seeking Alpha analysts see the stock as a HOLD.

Analyst Uttam Dey feels Carnival (CCL) should continue to benefit from a strong demand environment as its Q3 report comes up at the end of September.

“Rate cuts and strong demand will boost Carnival’s financial health, but any adverse changes in these factors could pose significant risks,” Dey added.