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The Top 3 Cruise Stocks to Buy in April 2024 - InvestorPlace
The Top 3 Cruise Stocks to Buy in April 2024.
Posted: Tue, 23 Apr 2024 10:09:03 GMT [source]
Unfortunately, the pandemic has significantly affected Carnival's financial results. As of mid-2023, the cruise line operator had yet to return to profitability. Through the first six months of the year, the company reported a net loss of $563 million, or $3.02 per share. However, that was a significant improvement from the same period of the previous year when it posted a net loss of almost $1.3 billion, or $6.90 per share. I don't believe investors should expect Carnival stock to more than double in 2024 like it did in 2023.
Price Target and Rating
It might be smooth sailing for Carnival right now, but there are always rough waters to worry about. I don't believe this is a once-in-a-generation investment opportunity. Speaking of the economy, demand for cruise trips demonstrates cyclicality, as it's a discretionary purchase. I'm concerned about how Carnival will fare in a potential recessionary scenario, which could happen unpredictably. Now that the company has bounced back and looks to be on solid footing, I'm sure it's starting to catch the attention of investors. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
What to Do With CCL Stock
Even better, RSI, MACD, and Williams’ %R are all starting to pivot from over-extensions into oversold territory, as well. Last trading at $129.21, I’d like to see RCL initially retest prior resistance at $140.58 immediate term. Or, if you’d rather just stick with some of the top, oversold individual cruise stocks, here are three top ones you may want to consider buying immediately. However, the company is also trying to repay the debt it took on during the pandemic. It will take the company several years to get debt back down to a more comfortable level. That's hindering its ability to grow shareholder value through dividends, share repurchases, and new investments.
Carnival vs Royal Caribbean: which is the best cruise stock to buy?
Arnold W. Donald has an approval rating of 93% among the company's employees. This puts Arnold W. Donald in the top 30% of approval ratings compared to other CEOs of publicly-traded companies. With a strong year like that and a couple of concerns in January, it's not surprising to see it have a small 11% pullback. A couple of things could weigh on Carnival's profits in 2024 even though there are other more encouraging things with the business right now. On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Neil Patel and his clients have no position in any of the stocks mentioned. It's easy for investors to become short-sighted and focus too much on financial results from one year or one quarter. But it's best to think about the bigger picture, turning our attention to the long term.
Carnival vs Royal Caribbean: which is the best cruise stock to buy? - InvestorsObserver
Carnival vs Royal Caribbean: which is the best cruise stock to buy?.
Posted: Mon, 22 Apr 2024 06:44:44 GMT [source]
It would cost about $1,550 to buy 100 shares of Carnival stock at that price point. Shareholders with this many shares can receive an onboard credit of $50 to $250 per stateroom on sailings through July 31, 2024, for reservations made by Feb. 28, 2024. An alternative to investing directly in Carnival by purchasing shares is to consider passively investing in the company through an exchange-traded fund (ETF) that holds shares. According to ETF.com, 141 ETFs held more than 96.7 million shares of the cruise line as of mid-2023.
Carnival remains the largest company in the cruise industry, with nine global brands and 92 ships at the end of fiscal 2023. The global cruise market has historically been underpenetrated, offering cruise companies a long-term demand opportunity. With an European demand profile that has recently returned to normalized levels, we believe there is ample support for improving economic performance at Carnival. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. 20 equities research analysts have issued 1-year target prices for Carnival Co. &'s shares.
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Unfortunately, so far analysts are not yet predicting net income profits for the company for 2022. As a result, we can’t use a price-to-earnings (P/E) approach to valuing CCL stock. Net revenue, prior to the COVID-19 pandemic, peaked out at over $6.5 billion annually. The company’s growth hit a new stride in 1987 following the IPO which floated 20% of the company on the open market. The proceeds from the IPO allowed the company to embark on a voyage of acquisition and now Carnival is the world’s largest travel and leisure business.
Carnival's business is giving its shareholders plenty of reasons to be optimistic. In fiscal 2023, which ended Nov. 30, the company reported revenue of $21.6 billion, a record figure that was up 77% year over year. This number exceeded the previous record, which came in fiscal 2019. This assumes CCL stock will slowly rise to its average P/S multiple, but over time reach the average of its past multiple. Once the company becomes profitable or cash-flow positive — or even close to this — we can switch to a more robust valuation model. So, both sets of analyst surveys imply the average price target is even higher than my simple 50% upside projection based on the historical P/S model.
That being said, Carnival is considered one of the riskier names in the sector. In fiscal 2020 and fiscal 2021 (which ended in November 2021), Carnival's revenue and number of passengers plummeted. But over the past two years, all three of those core growth metrics bounced back. Could Carnival's stock keep climbing and hit new highs over the next three years? Let's review its previous slowdown, its recent recovery, and its expectations for the future to decide. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.
The cruise operator said it expects the disruption to hit annual adjusted earnings by as much as $10 million. According to 20 analysts, the average rating for CCL stock is "Strong Buy." The 12-month stock price forecast is $21.0, which is an increase of 41.18% from the latest price. It's easy to say this with the benefit of hindsight, but I don't necessarily think it's shocking to see Carnival putting up such strong numbers right now. Unless you were convinced that demand for cruise travel would permanently fall off a cliff, I bet you expected that this business would experience a reversion to the mean. During that 12-week stretch, the company hit a first-quarter record for sales. Key to this strong momentum is, without a surprise, robust demand from consumers.
The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zacks Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.
In late February, cruise stocks rallied after investors saw some life in the sector as vaccinations gained momentum. Analysts saw pent-up demand for vacations and booking trends turned positive. But if the market expected durable top line growth, then that could explain the share price weakness. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Carnival Co. &'s stock was trading at $18.54 at the beginning of the year. Since then, CCL stock has decreased by 19.6% and is now trading at $14.90. Carnival Cruise Line is the company’s largest brand serving guests on all coasts of North America.
