Carnival (CCL -0.03%) was under immense pressure after the COVID-19 pandemic shut down the economy. Travel was restricted, and the company's operations were suspended. This led to huge revenue declines that tanked shares.
However, Carnival has been navigating smooth waters recently. And investors have been rewarded. If you bought $1,000 worth of this travel stock three years ago, here's how much you'd have today.
Image source: Getty Images.
Carnival's comeback
Carnival's revenue in Q2 2025 (ended May 31) of $6.3 billion was a record. It ended the fiscal quarter with $8.5 billion in customer deposits, an all-time high. And the business generated $934 million in operating income, yet another record and a figure that was up 67% year over year. The company is performing at a high level.
It's no wonder, then, that the stock has bounced back nicely. It has climbed 184% in the past three years (as of Sept. 19). This would've turned a $1,000 investment into $2,840 today.
Still a smart buying opportunity
After such a phenomenal gain, the stock's valuation still looks compelling. Investors can add Carnival to their portfolios by paying a price-to-earnings ratio of 16.5. This is a 34% discount to the S&P 500.
It's true that Carnival's revenue and profit growth are going to moderate as we look toward the future, as it's coming off a low base from the pandemic years. But the long-term opportunity is clear, with cruises commanding a tiny fraction of the global leisure industry today, leaving plenty of upside.
