We recently published a list of the top 12 luxury stocks by hedge funds. In this article, we’ll take a look at how Carnival Corporation (NYSE:CCL) stands compared to other luxury stocks according to hedge funds.
According to a report by Mordor Intelligence, the luxury goods market will be valued at $103.1 billion in 2024. It is expected to grow at a compound annual growth rate (CAGR) of 7.07% and reach $145.08 billion by 2029. The luxury packaging market is valued at $17.2 billion in 2023, according to a public financial analysis by Global Market Insights on Yahoo! It is also expected to grow and reach $25.8 billion by the end of 2032.
Demand for luxury goods is very high in North America, primarily due to the region’s high disposable income. This is especially true during the ongoing holiday shopping season in the United States. On December 17, Simeon Siegel, senior retail and e-commerce analyst at BMO Capital Markets, appeared on CNBC to discuss the current consumer situation during the holiday season. He said U.S. consumers have been too resilient. In the current scenario, winners are growing in the market and laggards are retreating, which is how it should be. This trend is the opposite of the market trend during COVID-19 when all companies were growing. Siegel also said consumers continue to spend. For better or worse, consumers are afraid to put nothing under the Christmas tree this year.
On December 10, CNBC’s Steve Liesman appeared on “Squawk Box” to discuss the CNBC NRF Retail Monitor. The Monitor’s numbers supported Siegel’s assertion, showing healthy consumer spending in November despite the shortened 2024 holiday shopping season. Non-store retailers showed 21.5% year-over-year growth, reflecting these positive trends. This holiday season was accompanied by lower gas prices and lower overall commodity prices, so consumers had more money in their pockets and were paying slightly less than in previous years. This trend is a positive stimulus for the industry as luxury goods fall under the category of discretionary goods.
We discussed consumer behavior during the ongoing holiday shopping season in our recently published article on 7 Department Store Stocks to Buy Now. Below is an excerpt from the article.
“Holiday shopping season is in full swing in the United States. On December 2nd, Jessica Moulton, senior partner at McKinsey & Company, appeared on CNBC to discuss Black Friday spending and its impact on consumer sentiment. said that while 2024 was a tough year for retailers, numbers from the holiday season look promising, especially for blacks. There’s a lot of anticipation for Friday sales, and while we don’t have all the numbers, this trend is especially true online, with sales up 15% compared to last year in many markets. According to CNBC, total e-commerce spending on Black Friday was about $10.8 billion, but Moulton said foot traffic to stores hasn’t been as good and remains flat year-over-year. said.
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On December 2nd, Mastercard Economic Institute Chief Economist Michelle Meyer appeared on CNBC to discuss industry trends and said that consumers are geared towards value and finding the best deals. He said the Black Friday numbers show consumers are monitoring the market and preparing their spending for the Black Friday weekend.
As inflation subsides and promotions return, consumers are focused on finding the best deals on the market that offer value at a discount. This was one of the main drivers behind the huge increase in e-commerce spending over the Black Friday weekend. Apparel, jewelry, and electronics still top the holiday gift categories, but instead of prioritizing brand loyalty, consumers are prioritizing the most valuable promotions. Meyer was of the view that consumers had the ability and desire to spend. They are just being smart with their spending by spending when promotions and sales come on.
We scoured stock screeners, online rankings, and ETFs to create a list of 30 premium stocks. We then selected the top 12 most popular stocks among elite hedge funds as of Q3 2024. Hedge fund sentiment data was obtained from Insider Monkey’s database. The list is ordered by hedge fund sentiment in ascending order.
Why do we care what hedge funds do? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
Top 12 luxury stocks according to hedge funds
Number of hedge fund holders: 54 people
Carnival Corporation (NYSE:CCL) is a leisure travel company that operates a portfolio of luxury cruise lines, including Costa Cruises, AIDA Cruises, Princess Cruises, and Carnival Cruise Line. The company’s travel company operates and owns lodges, hotels, glass dome rail cars and motorcoaches.
The company has established a strong profitability model. Sales for the full fiscal year 2024 increased by more than 15% compared to the previous year, reaching a record high of $25 billion. Demand continues to be strong, with full year 2024 net income reported at $1.9 billion. Carnival Corporation (NYSE:CCL) achieved these high prices primarily due to strong demand. Its progress was wide-ranging, as the company made solid progress in 2024 pricing compared to 2023 across major cruise lines and transactions.
Carnival Corporation (NYSE:CCL) plans to continue this growth momentum. The company is actively working to strengthen its destination strategy to attract customers to cruise travel exclusively offered by Carnival Corporation’s (NYSE:CCL) portfolio of cruise lines. We are also working to raise awareness and consideration of cruise travel around the world. Carnival Corporation (NYSE:CCL)’s yield growth is expected to outpace historical growth rates and exceed unit price growth.
Overall, CCL ranks 2nd on the luxury stocks list according to hedge funds. While we recognize the potential of luxury stocks, we believe AI stocks are more likely to deliver higher returns in a shorter period of time. If you’re looking for AI stocks with more promise than CCL, but trading at less than 5x earnings, check out our report on the cheapest AI stocks.
Read next: 8 Best Widemot Stocks to Buy Now and 30 Most Important AI Stocks, According to BlackRock
Disclosure: None. This article was originally published on Insider Monkey.
