Shares of cruise operator Carnival were trading down more than 6% on Tuesday morning after the company cut its full-year profit forecast due to higher fuel prices and the impact of a strong dollar.
Will cruise line stocks follow Carnival lower today?
Not surprisingly, related cruise line stocks followed Carnival lower in trading today. Carnival is the biggest cruise line, so it's natural that this will pull the entire industry down. It's hard to see how even the 2023 adjusted EBITDA estimate is possible given the current state of the cruise industry.
Why did carnival stock fall 14% to $9?
Shares of Carnival plunged 14% to less than $9 per share on Wednesday after Morgan Stanley warned that the company could face heavy losses amid weakening demand and higher costs.
Why did cruise ship stocks tank?
Cruise stocks tanked on Wednesday after yet another major Wall Street firm warned that weak demand and higher costs could sink industry profits and lead to another demand shock, with Morgan Stanley cautioning that Carnival shares could lose all of their value if the economy falls into a recession.
Is Carnival Corporation a good investment right now?
In conclusion, Carnival Corporation and cruise line stocks in general aren't smart investments or the best investment candidates. Analysts might cut their financial forecasts for cruise line companies if current headwinds get worse, and this could potentially lead to another round of valuation de-rating for the sector and CCL.
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Why is Carnival stock dropping so much?
On Wednesday, Morgan Stanley issued another warning on Carnival's debt load, citing weak sales, growing economic risks, and the rising cost of interest on the debt. All in all, the pandemic has turned Carnival Corporation into one that is likely to see some very difficult times ahead.
Why are Cruise ship stocks down?
Cruise stocks were tumbling to their lowest point since 2020 on Thursday as fears intensified over rising inflation and a potential recession. Carnival (ticker: CCL ) was down 9.5% to $8.91, and was on track for its lowest close since April 2020.
What is the prediction for Carnival Cruise stock?
Stock Price Forecast The 19 analysts offering 12-month price forecasts for Carnival Corp have a median target of 13.00, with a high estimate of 29.00 and a low estimate of 7.00. The median estimate represents a +47.39% increase from the last price of 8.82.
Is Carnival stock a good buy?
Carnival Stock Forecast CCL is down nearly 80% since the beginning of 2020. Since the start of 2022, the stock is down nearly 50%. There was actually quite a bit of good news in Carnival's Q1 earnings report. However, it doesn't seem like any of this has been enough to sway investors.
Is NCLH a buy?
NCLH has an overall POWR Rating of F, which equates to a Strong Sell rating. Currently, there are no stocks in the Travel – Cruises industry with an A (Strong Buy) or B (Buy) rating.
Is Carnival a Buy Sell or Hold?
Carnival Co. & has received a consensus rating of Hold. The company's average rating score is 2.12, and is based on 5 buy ratings, 9 hold ratings, and 3 sell ratings.
Is CCL overvalued?
While CCL stock has been rallying among other discretionary stocks, reality has started setting in now, and most of the gains have now been wiped away. In the past month, the share price lost 16.8%. The stock is still gross overvalued, as it trades at over 27 times its forward enterprise value to sales.
What are the benefits of owning CCL stock?
Carnival Corporation Shareholder Benefit Offer: $250 Onboard Credit per Stateroom on Sailings of 14 days or longer. $100 Onboard Credit per Stateroom on Sailings of 7-13 days. $50 Onboard Credit per Stateroom on Sailings of 6 days or less.
Will Carnival Cruise Line Recover?
In May 2022, Carnival announced that it had relaunched its entire Carnival Cruise Line operations, as well as 80% of its Princess Cruises operations.
Should I sell Carnival stock?
Out of 15 analysts, 2 (13.33%) are recommending CCL as a Strong Buy, 1 (6.67%) are recommending CCL as a Buy, 8 (53.33%) are recommending CCL as a Hold, 1 (6.67%) are recommending CCL as a Sell, and 3 (20%) are recommending CCL as a Strong Sell. What is CCL's earnings growth forecast for 2022-2024?
Is Carnival undervalued?
And with a market capitalization of $18.6 billion, Carnival is trading for approximately 1.2 times forward sales. And when you add in a price-to-book ratio of 3.68, Carnival can be considered undervalued.