Meet the Monster Stock That Continues to Crush the Market

What's a monster stock? There could be many answers to this question. But in my book, it's a major company that's proven itself over time when it comes to earnings growth, has seen its stock soar -- and still has room to run.

One company that fits the bill right now is the leader in its industry and has demonstrated that it can manage tough times and come out on top. Let's meet the monster stock that continues to crush the market...

Image source: Getty Images.

A cruising giant

This company is one you may recognize if you like to travel, specifically if you enjoy cruise vacations. I'm talking about Carnival (NYSE: CCL) (NYSE: CUK), the world's biggest cruise operator. The stock has soared in recent times, advancing more than 30% over the past year and largely outperforming the S&P 500.

Carnival faced rough waters (excuse the pun) during early pandemic days as it was forced to halt cruising for a time, and this forced it to take on more and more debt. The result was an annual loss and skyrocketing borrowings.

But Carnival immediately took action. The company cut costs, limited the number of new ship builds, chose more fuel-efficient models, and designed ways to boost onboard spending. Carnival also put into place a plan, known as SEA Change, to boost sustainability and return on invested capital. And it surpassed the plan's performance goals 18 months ahead of schedule.

A return to profitability

All of these efforts have been reflected in Carnival's earnings reports over the past several quarters. The company not only returned to profitability but has also been setting record after record. For example, in the latest full year, Carnival reached record revenue and record adjusted net income. At the same time, the company also said advanced booked positions for this year remain at the record-high levels it saw during 2025. This is at historically high price levels. That's positive, as it shows that travelers are even willing to spend more to take a Carnival cruise.

Carnival has also steadily paid down debt and just recently returned to an investment-grade credit rating at Fitch Ratings.

It's also important to note that, prior to the pandemic, Carnival had demonstrated a positive earnings track record over time, too.

CCL Net Income (Annual) data by YCharts

Investors have recognized the company's strengths and its recovery efforts in recent quarters, and that's helped boost the stock. But this player still has plenty of room to advance. The stock trades at 12x forward earnings estimates, which is a very reasonable price.

And efforts it's made in recent years should favor profitability moving forward. All of this means that this monster stock may have what it takes to continue crushing the market.

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.