CCL - Carnival Corporation & Plc

NYSE - NYSE Delayed Price. Currency in USD
16.28
+1.82 (+12.59%)
At close: 4:00PM EDT

16.38 +0.10 (0.61%)
After hours: 7:59PM EDT

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Relative Strength Index (RSI)

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Performance Outlook
  • Short Term
    2W - 6W
  • Mid Term
    6W - 9M
  • Long Term
    9M+
Previous Close14.46
Open15.94
Bid16.33 x 2200
Ask16.40 x 3100
Day's Range15.82 - 16.52
52 Week Range7.80 - 53.86
Volume57,432,020
Avg. Volume67,028,850
Market Cap12.735B
Beta (5Y Monthly)1.96
PE Ratio (TTM)5.98
EPS (TTM)2.72
Earnings DateSep 25, 2019 - Sep 30, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateFeb 20, 2020
1y Target Est23.83
Fair Value is the appropriate price for the shares of a company, based on its earnings and growth rate also interpreted as when P/E Ratio = Growth Rate. Estimated return represents the projected annual return you might expect after purchasing shares in the company and holding them over the default time horizon of 5 years, based on the EPS growth rate that we have projected.
Fair Value
XX.XX
Undervalued
34% Est. Return
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    To no one's surprise, cruise liners like Carnival (NYSE:CCL, NYSE:CUK), Royal Caribbean Cruises (NYSE:RCL) and Norwegian Cruise Line (NYSE:NCLH) have been especially hurt by the novel coronavirus. At this point, they're all interchangeable. However, Carnival is notable for its now notorious Diamond Princess ship, which became the face of the all-too-familiar quarantining protocol. As a result, CCL stock finds itself down more than 72% year-to-date.Source: Ruth Peterkin / Shutterstock.com However, that kind of loss inevitably invites speculators and those who are rookies to the markets. Sure, CCL stock looks like it's on a discount. While the environment looks awful today, we recognize the need for vacations - especially from such stresses as shelter-in-place orders. Therefore, many are reasoning that Carnival and the broader cruise ship industry will make a recovery.Giving fuel to this narrative is that Carnival announced earlier this month that it plans to resume service on Aug. 1. This is a week after the end of the Centers for Disease Control and Prevention's no-sail order for the industry. Since early April, CCL stock has been steadily creeping higher as positive sentiment trickles in.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOf course, the CDC isn't happy about Carnival's intent. The agency is on record stating that traveling aboard cruise liners "exacerbates the global spread of Covid-19." But they might not need to be so vocal. It's the people who decide with their wallet what they want to do and it's not clear they'll return to the open waters. * 7 Excellent Penny Stocks Ready to Roar Recently, the Washington Post noted that 58% of American adults are concerned about going back to work, fearful that they might inadvertently infect their households. Imagine the sentiment for a non-essential function like going on a cruise? Economic Realities Work Against CCL StockFor those that think this industry offers untapped recovery potential, I would reconsider the thesis. Unlike other disasters that we've faced in this country, this is a crisis that has impacted in some significant way every American. Indeed, much of the world has suffered acutely from the pandemic.Therefore, I don't believe in the quick recovery narrative that you would find associated with, for instance, tragic accidents. That airplanes crash or that boats sink is an accepted risk that consumers take, particularly because these incidents are rare.But now, consumers have tuned into a new risk, that of an infectious disease spreading aboard. Actually, the risk isn't new but the concept of governments taking extreme quarantining measures is. That's not something that consumers will easily get over, which clouds the bull case for CCL stock.Beyond that, I also have concerns whether would-be travelers are able to go cruising. Much talk has been made of the latest jobless claims report, where 2.4 million have filed for unemployment benefits. Over a nine-week period, nearly 39 million Americans filed for aid. Click to EnlargeSource: Chart by Josh Enomoto Several media pundits have pointed out a silver lining in the otherwise stark data. Since jobless claims hit a peak around late March/early April, the number of people making claims has declined significantly. However, I don't see that as good news.When the crisis first became serious, virtually all non-essential services (i.e. restaurants, sporting events, movie theaters, etc.) shut down. That left millions of service industry workers out of a job, explaining the massive spike in claims.Now, as states reopen, we should see these early impacted workers get their jobs back. Logically, this suggests that the recent jobless claims are coming from higher-paid occupations. These are the type of folks that would go cruising. Black Eye on the Industry Won't Be IgnoredIf the discussion above wasn't enough to dissuade you from CCL stock, here are two interesting nuggets that I discovered: * Millennials love ESG stocks, or stocks of companies that rank highly for environmental, social and corporate governance principles. So much so that this group has outperformed during this crisis relative to non-ESG names. * Millennials love CCL stock, especially at these deflated prices. That's according to Robinhood, whose investing app is very popular among the younger demographic.This is a glaring contradiction. As of May 14, the U.S. Coast Guard that almost 60,000 cruise liner crew members are stuck at sea in U.S. waters. Of course, this includes many from Carnival's payroll.To be fair, Carnival plants to repatriate tens of thousands of their crew members throughout the world through various means. As well, bureaucratic roadblocks have utterly failed those who have been stranded. It's not accurate to heap all the blame on the cruise ship operators.Nevertheless, it's an ugly black eye for the industry because the buck has to stop somewhere. And terrible tragedies of desperation have occurred among those forcibly quarantined.Therefore, I expect that this news will filter down to the millennials who love CCL stock so much. It's too much of a paradox to see travelers enjoying their vacation while thousands have been sentenced to glitzy, floating prisons.A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Carnival Is Hitting All the Branches of the Ugly Tree appeared first on InvestorPlace.

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    The steep discount in cruise line stocks like Carnival (NYSE:CCL) has bottom fishers everywhere itching to cast a line. Today we're going to look at the signs that stability is returning to CCL stock and show how you can increase your odds of success by using options contracts.Source: FlickrThe likes of Carnival and Royal Caribbean Cruises (NYSE:RCL) have been demolished amid a global pandemic. Who wants to take a trip on a ship which may or may not have the novel coronavirus haunting their halls? Not many. Shifting consumer preferences along with government-mandated travel restrictions work directly against Carnival and crews' business model. Cast AdriftBut the grand re-opening has begun. Restrictions are being removed and people are emerging from their hideaways. A new normal is settling in, and the stock market is pricing in a brighter future. No one yet knows how quickly cruise demand will return, though. And that leaves a cloud of doubt hanging over stocks like CCL stock. It's likely why it has been drifting rudderless for six weeks now. Sellers feel the 80% slashing off the 52-week highs is sufficient to price in the new economic realities. But, buyers remain tepid, lukewarm in their enthusiasm, and thus not yet willing to jam prices higher to join the rousing recovery seen elsewhere.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLet's take a closer look at the price action. Looking at the CCL Stock ChartsSource: The thinkorswim® platform from TD Ameritrade The gravity of the situation quickly settles in when we look at the weekly time frame. From 2018's zenith of $72.7 to the March low of $7.80, Carnival sank 89%. No matter how you spin it, it's a loss of disastrous proportions. And, unlike a broad swath of other stocks that have enjoyed V-shaped rebounds, Carnival's trajectory has merely shifted from down to sideways. Because of the grim prospects for its business in the near term, its share price has lacked the buoyancy seen in other stocks that are sure to exist in the post-coronavirus world. * 7 Dow Jones Stocks to Buy With Fortress-Like Balance Sheets It's as if buyers are waiting for a signal that it's safe to wade back into the waters. And the gradual reopening isn't cutting it. On the business side, maybe it arrives in the form of Carnival or one of the other industry giants confirming demand is ramping back up faster than expected. A better-than-expected earnings report could do the trick. If enough parties are surprised, it could lead to a rapid repricing.On the price chart front, we need a breakout, preferably accompanied by high volume to confirm institutions are returning. Thus far, the past two months appear nothing more than a short spurt of sideways consolidation for CCL stock. On the bright side, if we can breach $20, there aren't any resistance zones until $30. The runway, in other words, is clear.I've included the daily chart so you can see a more detailed view of the trading range carved out. A small shelf has developed with resistance at $15. A push above that could morph into a rally to $17. That could be good for a short-term trade, but in my mind it's the eventual break above $20 that would really catch my eye.Source: The thinkorswim® platform from TD Ameritrade Covered Calls for Cash FlowIf your intent on bottom fishing CCL stock here, then you have three choices. First, play the break over $15. Second, wait for more confirmation and take the breakout over $20. Third, buy the stock now but use covered calls to reduce your cost basis and generate income while waiting for the stock to recover. That way, if Carnival dithers for months before moving higher, you'll still be getting paid.The Trade: Buy 100 shares of CCL for $14.60 and sell the June $17 call for 65 cents.The 65 cent premium reduces your effective purchase price to $13.95. If the stock remains below $17 for the next 30 days, then you'll pocket the 65 cents. That works out to about a 4.6% return. If CCL stock pushes past $17, you'll capture the max reward of $3.05, which is a 22% return.For a free trial to the best trading community on the planet and Tyler's current home, click here! As of this writing, Tyler didn't hold positions in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post The Best Way to Bet on Carnival Stock as Hungry Bottom-Fishers Loom appeared first on InvestorPlace.

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    TipRanks

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Highlighting the resiliency of the industry, Chaiken said, "The cruise industry has bounced back before from deadly accidents, sudden regulatory changes and storms.” He added, “Additionally, we think the cruise demographic is favorable for a recovery in demand, and could be why 55% of cruise customers, according to our checks, are opting for a cruise credit vs. cash, post COVID -19 disruption. We think this is a very powerful data point highlighting the resiliency in the product, and speaks volumes in terms of future demand for the industry, especially in the context of current sentiment which questions if the product will even exist in the future.” Taking all of this into consideration, Chaiken points to two cruise line stocks with especially strong long-term growth narratives, initiating coverage of each with bullish ratings. The analyst does remind clients that not all cruise industry players are set to outperform, recommending that investors avoid one in particular. Using TipRanks’ database, we wanted to see if other Wall Street analysts agree with Chaiken’s calls. Here’s what we found out. Royal Caribbean (RCL) With 63 ships carrying approximately 6 million passengers every year, Royal Caribbean counts itself as one of the top cruise ship operators. While COVID-19 has certainly taken a toll on the company, Chaiken believes that when demand recovers, RCL will be a major beneficiary. The Credit Suisse analyst argues that part of the company’s strength is derived from the location in which it operates cruises. “We think the Caribbean –where RCL is best positioned in terms of capacity allocation and product--could be a bright spot when demand does return. Many Caribbean itineraries require little or no air travel to embarkation, which we think is likely a positive for those with remaining fear over air travel,” he explained. It also doesn’t hurt that “RCL has the ability to market to guests with a shorter booking window.” Additionally, Chaiken implores investors to take RCL’s performance before the onset of the public health crisis into account. "We think RCL was gaining significant momentum heading into the Coronavirus-led slowdown, with its CocoCay destination (a private island in the Bahamas offering differentiated land-based activities), demanding price premiums and an had been planning an 80% increase in volume in 2020 vs. 2019, prior to the outbreak,” the analyst stated. He added, “RCL finished 2019 at 108% occupancy and reported net yields of 8%.” If that wasn’t enough, Chaiken expects several potential tailwinds to emerge post-COVID-19. Its acquisition of Silversea added two ships to the fleet and expanded its agent network, providing a tailwind to yields. Cost tailwinds could also be in RCL’s future. Even though liquidity and cash burn are considered by some to be a cause for concern, Chaiken is optimistic. “RCL recently raised $3.3 billion in secured notes, giving us further confidence that they should be able to manage the slowdown,” he noted. To this end, Chaiken kicked off his RCL coverage by publishing an Outperform rating. Accompanying the bullish call is a $67 price target, which suggests 55% upside potential. (To watch Chaiken’s track record, click here) Looking at the consensus breakdown, the bulls have it. RCL’s Moderate Buy consensus rating breaks down into 8 Buys, 5 Holds and 1 Sell. At $60.36, the average price target implies 39% upside potential. (See Royal Caribbean stock analysis on TipRanks) Norwegian Cruise Line (NCLH) Comprised of three brands that include Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, this name operates 28 ships in the Caribbean, Europe, Alaska, Asia, Bermuda and Hawaii. Despite the fact that COVID-19 fears have pushed shares down by 76% year-to-date, Credit Suisse recommends that investors go in on NCLH based on its solid event path and positioning in an expanding segment. Chaiken points out that NCLH has recently enhanced liquidity in not one, not two, but six different ways. These include receiving a “debt holiday” from its export credit partners, delaying amortization payments which added $905 million of liquidity, an investment from private equity firm L Catterton, as well as share, convertible debt and notes offerings. On top of this, the company already ended 2019 with $1.8 billion of liquidity. With respect to cash burn, Chaiken estimates “NCLH has a cash burn profile in the $140-150 million per month range”, which gives it two years of runway in an environment with no revenue. It should also be noted that NCLH doesn’t have ship deliveries until 2022, alleviating some of the pressure on the company. "With $4 billion of liquidity, no new ship deliveries until 2022, and our assumption of a return to cruising in August, we do not see bankruptcy on the table,” the analyst commented. Sure, COVID-19 will most likely weigh on pricing and capacity in 2020, but Chaiken thinks that like RCL, the strong trends witnessed before the outbreak should be considered. “NCLH finished the year at 107% occupancy and reported net yields of 3.6% in 2019. Adjusting for headwinds related to Norwegian Pearl, Hurricane Dorian and Cuba, we think NCLH generated core growth of 5.6% in 2019... we think NCLH was likely ~20 -25% booked for 1H21, as of March 1, providing a layer of pricing stability, even as newly booked sailings potentially see significant pricing deceleration as some cancellations inevitably occur,” he explained. Adding to the good news, NCLH also stands to benefit from the reversal of the shortened Cuba booking window and improving mix for the former Cuba ships as well as lapping Hurricane Dorian and a technical issue related to Pearl, with these adding a “small layer of stability in a volatile time.” “We think NCLH offers a differentiated vacation, within an oligopoly, at a significant discount to other land-based alternatives and as such we believe we will see demand for the product come back,” Chaiken concluded. It should come as no surprise, then, that Chaiken joined the bulls. To start off his coverage, he put an Outperform rating and $21 price target on the stock. Should this target be met, a twelve-month gain of 50% could be in store. Turning now to the rest of the Street, 7 Buys and 8 Holds have been assigned in the last three months, making the consensus rating a Moderate Buy. In addition, the $16.50 average price target implies shares could surge 18% in the next year. (See Norwegian Cruise Line stock analysis on TipRanks) Carnival Corporation (CCL) When it comes to Carnival, the largest publicly traded cruise line, the company has found itself in choppy waters, with Chaiken not expecting smooth sailing anytime soon. Down 71% since the start of 2020, some might see this decline as representing a buying opportunity. However, in the long-term, Chaiken believes the company will come up short when compared to its peers. The analyst makes it clear that he doesn’t see bankruptcy as being very likely based on the fact that CCL raised $9 billion of liquidity over the last few months. Having said that, this financing could create a problem for CCL as it will almost triple its interest expense. Looking at the near-term, Chaiken points to its high levels of cash burn as setting the company up for trouble. “From a cash burn perspective, we estimate CCL has a cash burn profile in the ~$1 billion per month range, leaving them with just over nine months of runway in a zero-revenue environment. This compares to RCL of $450-470 million per month and NCLH of $140- 150 million per month,” he stated. Also problematic, CCL had less momentum going into the year than both RCL and NCLH as its net yields were flat. The most significant issue for CCL, though, is that passengers from Europe make up a substantial portion of its customer base, and Chaiken has less confidence in certain European economies, namely Italy. Expounding on this, Chaiken said, “Given CCL sources its European itineraries (~30% of capacity) with guests from Europe, in our view it adds an additional layer of risk to the story not present in RCL or NCLH...So while we think CCL will live to fight another day, we think CCL will underperform peers as demand rebounds. In short, we think CCL has greater implicit leverage to continental Europe given they fill their European-based itineraries with customers who live in Europe.” Bearing this in mind, Chaiken took a spot on the sidelines. Along with his Neutral rating, he set a $12 price target. This target suggests shares could shed 18% of their value in the next year. The verdict is in, and the rest of the Street agrees with Chaiken. 3 Buys, 8 Holds and 3 Sells add up to a Hold consensus rating. That said, the $19.33 average price target does indicate upside potential, 32% to be exact. (See Carnival price targets and analyst ratings on TipRanks)

  • Why one analyst thinks now is the time to buy cruise stocks: Morning Brief
    Yahoo Finance

    Why one analyst thinks now is the time to buy cruise stocks: Morning Brief

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  • How Getting Aboard Royal Caribbean Stock Makes Sense Following Earnings
    InvestorPlace

    How Getting Aboard Royal Caribbean Stock Makes Sense Following Earnings

    A bullish market tide has been lifting most risk assets of late. Yet shares of distressed Royal Caribbean (NYSE:RCL) have been left to drift in bearish technical waters. Now though and following earnings, is it time for investors to finally board RCL stock with an eye on calmer conditions ahead?Source: Laszlo Halasi / Shutterstock.com The novel coronavirus and ensuing Covid-19 pandemic have been challenging to say the least for cruise line operator Royal Caribbean. Not that it's alone. If misery loves company, Carnival (NYSE:CCL) and Norwegian Cruise Lines (NYSE:NCLH) are in the same boat. Still, operations have been remained shuttered since March. What's more, under RCL's current no-sail policy, its cruises aren't set to resume until the end of July and there's always the chance of further delays.Harmful industry publicity, as a handful of cruises were left to self-isolate on the high seas for weeks in March, roiled the shares. Then, difficult to navigate, socially distanced policies cast doubt on most vacationing, let alone on a ship in the middle of the ocean. Consequently, it should come as little surprise that the broader market's dazzling recovery hasn't proven nearly as rewarding for longer-term shareholders of Royal Caribbean.InvestorPlace - Stock Market News, Stock Advice & Trading TipsDespite the stock enriching a few investors as it more than doubled in price from its absolute low on March 18, RCL remains underwater by nearly 70% year-to-date. Shares are also trading at stock prices first reached more than 20 years ago. Confidence BoostThe good news is Wednesday night's earnings release hints that Royal Caribbean's current stranding isn't likely to turn into a deeper and inescapable sinking.Reaction to RCL's report was good in Thursday's session. That's not to say heavy quarterly losses and dismal-sounding declines in sales weren't announced. They were. But investors are resting easier following some confidence-boosting clarity from management.Shares ended the session firmly higher by about 6.5% after being up more than 10%. A water-logged performance in the broader averages, as well as the weight of a couple market leaders like Netflix (NASDAQ:NFLX) and Enphase Energy (NASDAQ:ENPH), brought indexes below the water line. * 7 Excellent Penny Stocks Ready to Roar Highlights from the quarterly announcement included much-needed liquidity reassurances from management. Following a recent capital raise of more than $3.3 billion, the company stressed its ability to stay afloat for an entire year even if operations remain on hold. Further, access to additional funding is available, if required. That's certainly good news given Royal Caribbean's credit downgrade last week to a junk bond rating in the aftermath of tapping the debt markets.Lastly, RCL is seeing surprisingly strong new advanced organic bookings. And with management guiding expectations that reasonable load numbers of 30% to 50% should allow for an EBITA profit once operations are resumed, Thursday's bid has some good-looking supports behind it. RCL Stock Monthly Stock Chart Source: Charts by TradingViewOn the RCL price chart, investors electing to board the stock as an investment should be prepared for volatility. It's anticipated the latest information should have a calming effect on shares and increases the likelihood of a bottom being in place. Still, it should be appreciated Royal Caribbean's low is more than 50% beneath current prices. That could lead to substantial paper losses or worse, even if the low remains intact.Another problem is the company's ability to turn this quarter's massive loss into an eventual -- and steadier -- profit stream. Investors are obviously enjoying RCL's report. Still, operational uncertainties remain. Secondly, what if a second wave of Covid-19 hits, causing future cruise line shutdowns in its wake? It's the type of risk shareholders should be prepared to handle. Turnaround PositionWith those caveats out of the way, Royal Caribbean's climatic sell-off does lend itself to a stock positioned as a turnaround play. The provided monthly chart speaks for itself. But as with its peers, I'd recommend exposure using a limited risk options strategy to define and lessen risk relative to buying shares outright.Today's recommendation is to consider the purchase of a less-capital intensive, slightly out-of-the-money intermediate bull call spread. Currently, the September $45 / $50 or $50 / $55 call verticals are two which look reasonable given the circumstances.Bottomline, this type of strategy will require shares to continue rallying in order to allow for profits at expiration. But if RCL does move higher the benefits of leverage could also be huge compared to returns for shareholders. And defensively, investors don't have to worry about Royal Caribbean shares completely failing or sinking sufficiently and potentially causing much larger losses due to bad judgment during adverse volatility.Disclosure: Investment accounts under Christopher Tyler's management do not own positions in any securities mentioned in this article. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post How Getting Aboard Royal Caribbean Stock Makes Sense Following Earnings appeared first on InvestorPlace.

  • Credit Suisse initiates Royal Caribbean, Norwegian Cruise Lines at outperform
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    Credit Suisse initiates Royal Caribbean, Norwegian Cruise Lines at outperform

    On Thursday, Credit Suisse analysts led by Benjamin Chaiken initiated coverage of the cruise line industry with an outperform rating of Royal Caribbean and Norwegian Cruise Lines, and a neutral rating of Carnival Corporation. The firm thinks that while COVID-19 will likely have "a lasting impact on the cruise industry, the unmatched value proposition of the product will be a driving force behind a recovery". The Final Round panel discusses the sector’s outlook.