Carnival Corp. shares have risen 24% over the past month as declining crude oil prices and record cruise demand improve the company's outlook ahead of its second-quarter earnings report this week. Crude oil recently hit a three-month low and average pump prices fell below $4 per gallon, turning fuel costs from a headwind into a tailwind for the cruise operator. Carnival's fundamentals are already strong, with bookings and prices at record highs, customer deposits reaching nearly $8 billion in the first quarter, and management raising its full-year guidance. The company also launched a $2.5 billion share buyback program. Analysts have a consensus price target of $35 per share, and the stock trades at forward and trailing price-to-earnings ratios around 13.
Carnival CorporationFalling crude oil prices reduce fuel costs, a key input for cruise operations.