It wasn't long ago that Carnival (CCL 0.54%) investors had every reason to be pessimistic. The company was trying to navigate the effects of the COVID-19 pandemic, which halted its operations. Demand dried up, and revenue took a huge hit. It was difficult for shareholders to be bullish.
However, this travel stock has turned things around in a remarkable way, thanks to robust financial performance. Investors have been rewarded with huge gains. If you'd invested $1,000 in Carnival shares three years ago, here's how much you'd have today.
Image source: Carnival.
Carnival's business is operating at a high level
Since October 2022, the S&P 500 index has generated a total return of 86% (as of Oct. 6). This doesn't hold a candle to Carnival, though, as the cruise line stock has soared 285% during the same time. A $1,000 investment in Carnival back then would be worth $3,850 today.
Strong fundamentals driving the stock
Following its struggles during the pandemic, Carnival has been posting incredible financial results, most notably related to impressive demand trends that don't seem to be letting up.
Revenue in Q3 2025 (ended Aug. 31) of $8.2 billion was 89% higher than the same third-quarter period three years ago. Carnival also ended the quarter with record customer deposits. This has helped the company get back to producing positive net income. And the leadership team has been able to refinance and pay down debt, an encouraging sign.
