Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cruise operator Carnival (NYSE:CCL) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Carnival's business and see what CAPS investors are saying about the stock right now.

Carnival facts

Headquarters (founded)

Miami, Fla. (1974)

Market Cap

$21.0 billion


Hotels, Resorts, and Cruise Lines

Trailing-12-Month Revenue

$14.36 billion


CEO Micky Arison (since 1979)

COO Howard Frank (since 1998)

Quarterly Revenue Growth (average, last eight quarters and most recent quarter)

9.1% and (9.1%)


Royal Caribbean (NYSE:RCL)

Walt Disney (NYSE:DIS)

CAPS members bearish on CCL also bearish on

Lennar (NYSE:LEN)

D.R. Horton (NYSE:DHI)

CAPS members bullish on CCL also bullish on

General Electric (NYSE:GE)


Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, fully 126 of the 418 members who have rated Carnival -- some 30% -- believe the stock will underperform the S&P 500 going forward. These bears include btukwh and All-Star jstegma, who is ranked the top 0.5% of our community.

Earlier in the year, btukwh found little reason to celebrate Carnival's prospects: "I'm thinking cruising is one of the last things people are going to be doing in the next year or two. A great company, but not timely in the current fearful economy."

In a pitch from late April, jstegma shared that same sinking feeling:

[T]he primary reason I red thumbed this was that the economy is tanking and will continue to do so for quite some time. ...

Also, I think cruises are a lifestyle upgrade that people went for that they couldn't afford. ...

When it comes down to it, cruises are just one of the easiest discretionary expenses to cut, and consumers are going to have to cut something.

Cruise lines have high fixed costs and making a profit is going to depend on filling up those cruise ships, and that is going to be very difficult in the next 3-5 years.

What do you think about Carnival, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Disney and Apple are Motley Fool Stock Advisor picks. Disney is also an Inside Value selection. The Fool's disclosure policy always gets a perfect score.