|Bid||16.10 x 1000|
|Ask||16.15 x 1100|
|Day's Range||15.86 - 17.36|
|52 Week Range||7.03 - 59.78|
|Beta (5Y Monthly)||2.75|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug 06, 2020 - Aug 10, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||17.79|
You don't need any special skill sets to recognize the dire picture for Carnival (NYSE:CCL). Recently, S&P Global Ratings downgraded the cruise ship operator's long-term credit rating by three levels to BB-. This cut comes after Moody's Investors Services rated the company as "junk." Naturally, this leaves CCL stock in quite a predicament.Source: Ruth Peterkin / Shutterstock.com To be fair, the negativity isn't unreasonable. After all, it was the Diamond Princess - which is under the Carnival umbrella - that became the face of the novel coronavirus as it was forcibly quarantined off the coast of Japan. Later, other cruise ships suffered the same fate, bringing a black eye to operators like Royal Caribbean Cruises (NYSE:RCL) and Norwegian Cruise Line (NYSE:NCLH).However, there's a case to be made about deeply embattled investments making a comeback. Certainly, I wouldn't recommend shorting CCL stock. With prices discounted almost ridiculously if you didn't understand the context, they will nevertheless attract at least some contrarians.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn addition, states have pushed toward reopening their economies back to normal capacity. While the record surge in coronavirus cases is a big distraction, bullish investors may argue that the reopening initiatives can't go backwards indefinitely. At a certain point, we've got to get on with our lives. Should enough people embrace this sentiment, CCL stock could recover sooner than expected. * 7 Utilities Stocks to Buy With Reassuring Dividends But will vacationers adopt this philosophy? Of course, anything is possible. However, I personally remain skeptical for these three reasons: PR Nightmare May Not Be Over for CCL StockIf you ever wanted to kill someone, you should abandon whatever plan you have in your mind. Instead, invite your victim to an international cruise. After you've given the target a little bit too much to drink, simply toss (or accidentally bump) that person overboard.Perhaps in most cases, nobody would care.Now, just to be clear, I was being completely facetious about the above, except for one thing: you actually might get away with the heinous deed.Though cruise ship companies sell you fun and glamour on their brochures, they of course leave out the seedy stuff. Typically, unless you were actively looking for such scandalous stories, you probably wouldn't find them. Thanks to the coronavirus, though, everyone is putting this industry under the spotlight.And one of the most disturbing practices is what Captain Kelly Sweeney terms "flags of convenience;" that is, a cruise ship operator could be incorporated in one country and their ships registered in another. Again, when everything is going well, this isn't a big deal. But when something does happen, issues of jurisdiction can get confusing and ugly.I don't have the space to get into it in detail, but this discrepancy contributes to why you see cruise ship workers stranded at sea. With multiple international entities, it's not clear who has responsibility for what or whom.And now that more people know about this glaring controversy, they're less likely to climb aboard. Logically, this is bad news for CCL stock. Cruises Facilitate InfectionsStill, the biggest concern that vacationers have toward the cruise liner industry is unquestionably the health component. Even in the best of times, these big boats are floating Petri dishes. But with a pandemic raging everywhere, you're going to be a little on edge to say the least.Further, I'm not sure how cruise ships will be able to mitigate the spread of infectious diseases. Do a little digging about this industry before the pandemic and you'll come across several stories about disease-stricken ships. In many cases, the disease in question spread rapidly from one person to hundreds seemingly overnight.With close quarters and the presence of ample food and beverages, all it takes is one person to not wash their hands to create a nightmare. And if that nightmare happens to be the coronavirus, passengers can look forward to weeks of quarantine. That risk alone is enough to make you think twice about CCL stock.Also, as Health.com's Leah Growth explains, "Another big issue regarding illnesses on cruise ships is that, once a cruise is complete and one group of passengers exits the vessel, another one almost immediately sets sail." Thus, an outbreak could spread from one crew to multiple groups of passengers, very well causing an international cascade. Will You Pay for New Normal Cruising?In the turmoil surrounding CCL stock and the underlying sector, an unavoidable question exists: will people pay for the new normal of the cruise ship industry?I've only been on a cruise one time in my life. As part of a musical festival at sea, it was a mesmerizing experience, especially for a nerdy high school jazz trumpet player. If I could go back, I'd definitely do it again.Part of what made the voyage memorable was the people. We got to hang out with the other bands, and I socialized with my classmates in a non-academic setting. Not once did I consciously think about washing my hands.I did clean after myself, mind you. But my point is that I didn't consciously think about it. However, I imagine that cruising in the post-pandemic world would be an entirely different paradigm, one that I probably wouldn't enjoy and one that I certainly wouldn't pay for.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 * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 3 Reasons to Avoid Climbing Aboard Carnival appeared first on InvestorPlace.
In the latest trading session, Norwegian Cruise Line (NCLH) closed at $16.42, marking a -0.06% move from the previous day.
Following an official extension of the suspension of cruise operations from U.S. ports, Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) and Royal Caribbean Cruises Ltd (NYSE: RCL) have halted nearly all cruises through September against expectations of an August resumption, according to BofA Securities.The Cruise Lines Analyst BofA's Andrew Didora updated the estimates to reflect a phased-in recovery beginning in October. The analyst also rolled forward the price targets for cruise lines to 2022 estimates. * Didora maintained a Neutral rating on Norwegian Cruise Line Holdings with a price target lifted from $12.50 to $19. * Didora reiterated an Underperform rating on Royal Caribbean Cruises and raised the price target from $23 to $40.The Cruise Lines Thesis Capacity for cruise lines is likely to remain at just 20% of fourth-quarter 2019 levels and may recover to only 75% in 2021, Didora said in a Wednesday note. (See his track record here.)The analyst lowered 2020 earnings estimates: * From a loss of $7.12 per share to a loss of $7.39 per share for Norwegian Cruise Line Holdings. * From a loss of $14.18 per share to a loss of $15.29 per share for Royal Caribbean Cruises. With the cruise industry not generating any revenue for six months this year, 2021 could be a transition year "as capacity and revenues likely ramp back up slowly throughout the year," the analyst said. NCLH, RCL Price Action Shares of both Norwegian Cruise Line were up 0.19% at $16.45 at the time of publication, while Royal Caribbean shares were higher by 1.01% at $50.82. Related Links: Cruise Stocks Fall After Halting Trips From US PortsCarnival Is Staying Afloat Through 2020, BofA Says After Cruise Line's Preliminary Q2 ReportLatest Ratings for NCLH DateFirmActionFromTo Jun 2020BarclaysDowngradesOverweightEqual-Weight Jun 2020RedburnDowngradesBuyNeutral Jun 2020Morgan StanleyReinstatesUnderweight View More Analyst Ratings for NCLH View the Latest Analyst RatingsSee more from Benzinga * BofA Downgrades iHeartMedia On Lower Visibility, Advertising, Event Headwinds * BofA Raises PG&E Target On Potential Debt Paydown * Cantor Raises Trulieve Cannabis Price Target On Latest Florida Numbers(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
AAA Northeast’s Robert Sinclair joins The First trade to discuss the difficulties surrounding the summer travel businesses and what these businesses have done to adapt.
America's up-again, down-again group of cruise line stocks -- Carnival Corporation (CCL), Royal Caribbean (RCL), and Norwegian Cruise Line Holdings (NCLH) -- went down again, en masse, this week, with all three companies' stocks sinking 10% or more.Don't say you were not warned.Analyst Chris Woronka of Deutsche Bank penned a note in which he tweaked price targets ever so slightly higher. At the same as he did this, however, Woronka also warned investors that none of the three publicly-traded cruise stocks is currently cheap enough to buy.Although Woronka raised his estimates (the price target on Carnival going from $11 to $13 a share, Royal Caribbean going from $36 to $40, and Norwegian Cruise from $11 to $15), the analyst remained firmly on the fence about all three of these companies, and reiterated a "hold" rating on all three stocks. Turns out, while in the long term Woronka sees the three major cruise stocks recovering after getting torpedoed by the COVID-19 panic, it could be several years still before things start to look better for them.So, how precisely does Woronka seeing this situation playing out?First, the background. COVID-19 has done a number on the cruise stocks, first by frightening potential customers away, and later by making it utterly impossible for passengers to cruise, even were they so inclined, because of a "no-sail" order implemented by the Centers for Disease Control to prevent further spreading of the coronavirus. For the past several months therefore, cruise companies have had no revenue at all coming in. A recent announcement by the Cruise Lines International Association (CLIA), declaring that no cruise line will resume sailing before September 15 at the earliest, means there probably won't be any revenues coming in for another three -- or more -- months.To survive this situation, cruise lines have been cutting costs wherever they can. Woronka believes that, because cruise lines need to continue cutting costs, and are also forecasting a decline in demand for their services, it's likely that the cost cutting will result in cruise lines both postponing deliveries of cruise ships they've already ordered, and also selling off some of the ships they already have.Woronka believes that these ship sales will both generate cash (e.g. $3 billion in Carnival's case) that cruise companies can use to live on while confined to port, and also result in smaller, more efficient fleets by the time things start to recover two or three years from now. By the time 2023 rolls around, the analyst forecasts that Carnival, for example, will be operating a fleet 20% smaller than its current fleet. Royal Caribbean's fleet will be 8% smaller, and Norwegian's, 7% smaller.Smaller fleets are easier to fill up quickly with passengers, such that by 2023, Woronka believes that Carnival, for example, will have "net yields" (ships sailing with all cabins full) 3% higher than it enjoyed in 2019. And because fleets will be eliminating their older, less profitable ships, he also predicts EBITDA profit margins will improve at all three cruise lines.That's the good news. Now here's the bad: In addition to selling old ships, cruise lines have also been taking on boatloads of new debt in order to raise the cash they need to remain solvent while confined to port. In total, Carnival, Royal Caribbean, and Norwegian Cruise are estimated to have taken on about $16 billion in new debt since the pandemic broke, while raising only about $1 billion in cash through share sales.Even at low interest rates, Woronka estimates that all this debt will add about $1.3 billion in annual interest expense at the cruise lines, thus siphoning off money that would otherwise drop to the bottom line, and depressing 2023 earnings per share by anywhere from 23% to 30% at all three cruise lines.So long story, short? Yes, cruise lines will recover, and several years from now, when coronavirus is only a distant memory, cruise ships will probably be back to sailing at full capacity. Because of the measures the cruise lines had to undertake to survive to see that day, however, each and every one of these cruise stocks is going to be significantly less profitable -- which is why Deutsche Bank can't recommend buying any of Carnival, Royal Caribbean, or Norwegian Cruise Line stocks today.Using TipRanks’ Stock Comparison tool, we lined up the three alongside each other to get an idea of what the analyst community has to say about the long-term growth prospects of these cruise line players.To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Cruise stocks have been on a wild roller-coaster ride in 2020.First, the big drop. Then, the big rebound. Most recently, another big drop, on fears that a "second wave" of the novel coronavirus is emerging across the U.S.What comes next?InvestorPlace - Stock Market News, Stock Advice & Trading TipsA big and sustainable rally, meaning now is the time to buy cruise stocks.The logic is simple. Over the past few weeks, we've had: 1) arguably the most controversial filmed police killing of all time, 2) tons of protests and riots across the country, including some that have turned violent and forced store closures and 3) a sharp uptick in confirmed coronavirus cases across several states.Through it all, the U.S. economic recovery has persisted. Consumer mobility has increased. Restaurant and store foot traffic has improved. Consumer search interest in all things travel related has only grown. Overall economic activity has sustainably perked up. The stock market has kept ticking higher.Under the hood, what's happening is that "cabin fever" is finally getting to consumers and "nearly bankrupt" businesses are desperate to get back to some semblance of normal. As such, consumers and businesses alike are both increasingly learning how to keep the world turning while simultaneously managing Covid-19 risks via things like social distancing, plastic barriers and mask-wearing.Both parties will get better at this balancing act over the next few months. As they do, the human costs of the virus will remain relatively mitigated, while economic and social activity will continue to perk up.Against that backdrop, stocks will keep rallying -- especially recovery-sensitive, mobility stocks, like cruise stocks. * 10 Consumer Stocks to Buy to Ride the Post-Covid-19 Wave To that end, the best cruise stocks to buy as the world gets back to "normal" are: * Carnival (NYSE:CCL) * Royal Caribbean (NYSE:RCL) * Norwegian Cruise Line (NYSE:NCLH)Let's look at what makes each worth considering in this post-Covid-19 world. Cruise Stocks to Buy: Carnival (CCL)Source: Ruth Peterkin / Shutterstock.com The world's biggest cruise line operator, Carnival, doubles as one of the best cruise stocks to buy now.By my numbers, CCL stock could rally 70%+ over the next 18 months.Of course, fiscal 2020 for this company will be awful. For more than half of the year, the company will run zero cruises. For the other half of the year, cruise capacity will be significantly depressed -- if those planned cruises run at all.Fiscal 2021 will be a much better year. Consumers will get more comfortable with riding on cruises, especially if prices remain discounted and if a vaccine is approved by early 2021. Concurrent to that, Carnival will increase cruise capacity. The company's revenues and profit margins will meaningfully rebound.By fiscal 2022, things should be largely back to "normal" for Carnival. The virus will be more than two years old. The vaccine will have been in circulation for more than a year. Global travel trends will start to look like they did in 2019.Assuming so, Carnival's fiscal 2022 revenues should be awfully close to where they were in fiscal 2019 (approximately $21 billion). Profit margins won't rebound to where they had been historically -- roughly 17% average operating margin from 2015 to 2019 -- but should recover to a lower steady-state around 10% to 12% thanks to higher cleaning and maintenance costs.Under those assumptions, $2.40 seems like a doable earnings per share target for Carnival by 2022. CCL stock historically trades at 13-times forward earnings.That combination implies a fair 2021 price target for CCL stock of over $31 -- or more than 70% above where shares trade today. All of that together makes Carnival one of the best cruise stocks to consider buying now. Royal Caribbean (RCL)Source: NAN728 / Shutterstock.com Royal Caribbean has seen its stock price drop 30% on second wave fears. Now, the cruise line stock will rebound by more than 50% as those fears abate and business trends recover over the next 12 to 18 months.Royal Caribbean's 2020 will be a wash. We all know that. But management has said that 2021 bookings are trending in a "normal" range, implying that next year could be a huge bounce-back year for the cruise line operator.Assisting that bounce-back will be a potential Covid-19 vaccine in early 2021, low travel prices, potential travel subsidies, pent-up demand and increasing consumer confidence that virus risks can be managed … even on a cruise ship.Still, it will likely take another year until cruise travel trends fully recover. Assuming so, by 2022, Royal Caribbean's revenue profile should look a lot like it did in 2019.Fiscal 2019 revenues were around $11 billion. Fiscal 2022 revenues should recover to roughly $10.5 billion. Operating margins in 2019 were about 19%. They should rebound to 15% in 2022, with that four point delta accounted for in increased cleaning spend.Under those assumptions, my modeling suggests $6 in 2022 earnings per share is doable. Based on a historically-average 13-times forward earnings multiple, that implies a 2021 price target for RCL stock of $78. * 7 Explosive Cryptocurrencies to Buy After the Bitcoin Halvening That's up about 50% from where RCL stock currently trades. Norwegian Cruise Line (NCLH)Source: Roberto Sorin / Shutterstock.com Last, but not least, on this list of cruise stocks to buy is Norwegian Cruise Line.My base case for Norwegian broadly follows my base case for Carnival and Royal Caribbean.That is, a really bad year in 2020, followed by a strong recovery in 2021, and a further recovery in 2022 to traffic and revenue levels nearly on par with 2019 levels. Profit margins concurrently recover. But settle out at levels materially below where they were in 2019, thanks to higher cleaning and maintenance costs.That mental framework pegs Norwegian's 2022 revenues around $6 billion, and its profit margins around 10% to 12%.Under those very basic and reasonable assumptions, my modeling suggests that by 2022, Norwegian's earnings per share could rebound to $2.50, which is well within the range of Wall Street's estimates. Based on a historically average 12-times forward earnings multiple, that implies a 2021 price target for NCLH stock of $30.NCLH stock trades hands at $18. Thus, shares have visible runway to more than 65% upside over the next 18 months.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post 3 Cruise Stocks to Buy as the World Returns to Normal appeared first on InvestorPlace.
Cruise stocks, including Norwegian Cruise Line Holdings (NYSE:NCLH) stock, have been on a wild roller coaster ride in 2020.Source: Shutterstock.com First, cruise stocks tanked as the novel coronavirus pandemic emerged globally and shut down the entire cruise industry. Throughout February and March, NCLH stock dropped nearly 90%.Then, cruise stocks staged a jaw-dropping comeback in April and May, as Covid-19 hysteria abated and the economy and consumer behavior normalized. NCLH stock soared nearly 300% from its Covid-19 lows into early June.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMost recently, cruise stocks have taken another leg lower, on fears that a second wave of Covid-19 is emerging in the U.S. From its early June highs, NCLH stock has shed more than 30%.What's next in this wild roller coaster ride for cruise stocks and NCLH stock? A big and prolonged recovery. Here's why. A Persistent Economic RecoveryAs I've said before on InvestorPlace, the current U.S. economic recovery is persistent. * 10 Consumer Stocks to Buy to Ride the Post-Covid-19 WaveOver the past few weeks, we've had: 1) arguably the most controversial filmed police killing of all time; 2) tons of protests and riots across the country, including some that have turned violent and forced store closures; and 3) a sharp uptick in confirmed Covid-19 cases across several states.Through it all, the U.S. economic recovery has persisted. Consumer mobility has increased. Restaurant and store foot traffic has improved. Consumer search interest in all things travel related has only grown. Overall economic activity has sustainably perked up. The stock market has kept ticking higher.What does that tell you? The U.S. economic recovery is here to stay - for good.Under the hood, what's happening is that cabin fever consumers and businesses are desperate to get back to some semblance of normal. As such, consumers and businesses alike are both increasingly learning how to keep the world turning while simultaneously managing Covid-19 risks via things like social distancing, plastic barriers and mask-wearing.In other words, we are learning how to get the best of both worlds (and keep both our jobs and our health) by doing a balancing act between staying safe and doing things.Both parties will get better at this balancing act over the next few months. As they do, the human costs of the virus will remain relatively mitigated, while economic activity will continue to perk up.Against that backdrop, stocks will keep rallying - especially mobility-oriented stocks, like cruise stocks. NCLH Stock Is UndervaluedBy my numbers, Norwegian Cruise stock could rise more than 65% over the next 18 months as the world gets back to normal.The mental framework is simple.Fiscal 2020 will unarguably be an awful year for Norwegian. But consumers will start traveling again in 2021, boosted by low travel prices, pent-up demand, robust government stimulus and a potential vaccine (which will go a long ways in restoring consumer confidence). To that end, Norwegian's numbers will meaningfully improve in fiscal 2021.Then, by the start of fiscal 2022, we will have gone through a full year of cruise operations, with a vaccine, and hopefully without many (if any) serious Covid-19 cases. Consumers will regain their confidence in cruises. Global cruise demand will recover to levels just shy of 2019 levels. And Norwegian's revenues will nearly recover to where they were in 2019.From a numbers perspective, that implies somewhere around $6 billion in revenues by 2022. Profit margins won't fully recover. Historically, they have run around 18%. But higher cleaning costs going forward will push steady-state operating margin down closer to 10% to 12%.Assuming so, my modeling suggests that by 2022, Norwegians' earnings per share could rebound to $2.50. Based on a historically-average 12-times forward earnings multiple, that implies a 2021 price target for NCLH stock of $30.NCLH stock trades hands at about $15. Thus, shares have visible runway to 65%+ upside over the next 18 months. Bottom Line on NCLH StockThe recovery in NCLH stock will not be smooth. But make no mistake. NCLH stock is already on its post-Covid-19 recovery path. This recovery will persist. Ultimately, it will guide the stock to far higher prices over the next 12 to 18 months.So stick with the chop in NCLH stock. Ride out the turbulence. Buy big dips. And hold for the next 12+ months.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Buy NCLH Stock as Cruise Stocks Rebound from Covid-19 Fears appeared first on InvestorPlace.
Norwegian Cruise Line (NCLH) closed at $16.08 in the latest trading session, marking a +1.77% move from the prior day.
Yahoo Finance’s Alexis Christoforous and Brian Sozzi discuss what’s moving the markets on Wednesday with Noah Hamman, AdvisorShares CEO.
Investors may be coming aboard cruise line stocks in the second half of 2020. Position for smoother sailing with these trading ideas.
U.S. markets are poised to open in the red as continued increases in the number of coronavirus cases in the U.S. sparked worries that business activity would be slow to resume to normal levels and even lead to new restrictions.
Fitz-Gerald Group Chief Investment Officer Keith Fitz-Gerald joins Yahoo Finance’s Akiko Fujita to break down the latest market action after President Trump says the trade deal with China is "intact" following an aide stating it was over.
The stock market’s dim view of Norwegian Cruise Line (NCLH) has gotten even dimmer.Last week, NCLH announced the suspension of practically all its voyages between August 1 and September 30. The uptick in current coronavirus cases and stringent safety measures required to ensure passengers’ safety – and their effect on the sailing experience - appear to have resulted in the extension.If you were booked on a cruise and are disappointed by Norwegian’s actions, don’t blame the cruise operator for the cancellation, says Nomura analyst Harry Curtis. The blame lies squarely with the CDC (the Centers for Disease Control and Prevention). The analyst believes that despite the cruise line’s best efforts to implement the highest safety standards required by the agency, the CDC has shown “limited interest” in discussing the cruise line’s “suggestions for new protocols.”"Their messaging seems to be don’t even think about resuming operations,” said Curtis, “Even if most businesses are reopening, resorts and casinos are welcoming guests, and airlines are taking off with many flights near capacity with not a peep of objection from the CDC. It would seem that the cruise industry, its passengers and employees have been viewed by the CDC in the same vein as meat packing plants, nursing homes and prisons.”While the CDC’s current no-sail order applies only until July 24, it is feasible the agency will follow other countries’ recent actions by lengthening the sailing ban. Over the past month, sailing restrictions have been extended by health authorities in several countries, including Canada, Spain, and Australia.With the current slow pace of development, Curtis thinks it might take the CDC between 3 to 6 months to respond to the expert panel’s recommendations. By then, notes a frustrated Curtis, the 2020 season will be over.“We believe the sooner the CDC reconsiders the cruise industry as a willing partner, the faster employees get back to work and dedicated cruise customers can enjoy the same opportunity offered to resort, casino and airline customers,” the analyst concluded.Nonetheless, the current “unjust delay,” doesn’t alter Curtis’ long-term thesis for NCLH. The analyst reiterated a Buy rating, along with a $23 price target. The implication for investors? Upside potential of 35% from current levels. (To watch Curtis’ track record, click here)Overall, the beleaguered cruise line is getting mixed signals from the Street. NCLH's Moderate Buy consensus rating is based on 8 Buys, 5 Holds and 1 Sell. However, the $16.55 average price target implies the analysts expect shares to drop nearly 3%. (See NCLH stock-price forecast on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. More recent articles from Smarter Analyst: * The Rise of E-Commerce and Cloud Services Positions Amazon (AMZN) for the Win * Facebook Faces More Ad Boycotts, But This Analyst Expects Minimal Impact * 3 "Strong Buy" Penny Stocks With Explosive Upside Ahead * Heron Therapeutics: HTX-011 Will Eventually Be Approved, Says Analyst
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Carnival Corp. said Monday that it is extending the operational pause of its cruises in North America to Sept. 30, marking the third time it has extended the pause since the original announcement of a pause on March 13 as a result of the COVID-19 pandemic. The stock dropped 3.3% in morning trading. The announcement follows fellow cruise operator Norwegian Cruise Line Holdings Ltd.'s announcement last week that it was halting voyages through Sept. 30. Carnival said Monday that it was giving customers who wish to move their booking to a later date a future cruise credit and either a $300 or $600 onboard credit, and will also offer a full refund. Carnival's stock has shed 66.1% year to date, while the S&P 500 has lost 4.4%.
Stock futures climbed in early trading despite increases in coronavirus cases in some states, a hint that the market will continue a rally that has seen four consecutive weeks of gains for the Dow Jones Industrial Average.
Planning ahead in 2020 is turning out to be a fruitless task. Especially if you happen to be a cruise line eagerly waiting to resume operations.On June 16, struggling cruise operator Norwegian Cruise Line (NCLH) laid any hope of a summer at sea to rest. The company extended suspensions due to fears over the coronavirus’ potential to wreak havoc on board its cruise ships. Previously, schedules were suspended through July, but now virtually all cruises between August 1 and September 30 have also been cancelled. Some have been suspended for even longer, until the end of October.For Deutsche Bank analyst Chris Woronka, it is becoming clear “the summer months (typically the high season for cruising) are slipping away in terms of a potential restart period.”This begs the questions: what conditions are required for “even limited sailing activity to resume?” Or what kind of passenger experience will such a cruise provide?“Cruises are inherently social in nature and there are legitimate questions about the quality of the experience if physical distancing is required,” Woronka noted.Additionally, such a diluted experience could leave a bitter taste among passengers who will then be reluctant to book again when normal conditions resume.All of these facets lead Woronka to believe that until the elephant in the room is dealt with, cruise lines might not be going anywhere.“We believe there is likely to be enhanced focus around the question of whether large scale cruising can (or should) realistically resume before there are additional medical breakthroughs on the treatment and/or prevention of COVID-19. To that end, there isn’t necessarily a direct read-through to the stocks,” Woronka stated.To this end, Woronka maintains a Hold rating on NCLH shares. The analyst also has an $11 price target, implying the share price could decline by a further 43%. (To watch Woronka’s track record, click here)Overall, based on 8 Buys, 5 Holds and 1 Sell, the analyst consensus currently rates NCLH a Moderate Buy. However, the average price target of $16.55 suggests possible downside of 14%. (See NCLH stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
U.S. stock indexes on Friday gave up strong early gains to close mostly lower on the session, after the World Health Organization signaled that the coronavirus pandemic remains a deadly threat, and Apple said it will re-close nearly a dozen stores due to rising case counts. The Dow Jones Industrial Average finished 207 points, or 0.8%, lower at 25,871, the S&P 500 index closed 0.6% lower at 3,098, while the Nasdaq Composite Index finished virtually unchanged at 9,946. For the week, the Dow booked a 1% weekly gain, the S&P 500 returned 1.9% and the Nasdaq notched a 3.7% weekly advance. riday marked quadruple witching, which occurs on the third Friday of the month in March, June, September and December and can cause higher volumes and volatility as single-stock options, single-stock futures, and stock-index options and stock-futures all expire. In corporate news, Shares of Norwegian Cruise Line Holdings , Carnival Corp. , and Royal Caribbean Cruises tumbled after the Cruise Lines International Association announced a voluntary suspension of operations from U.S. ports until Sept. 15 due to the COVID-19 outbreak. The current no-sail order had been set to expire on July 24.
Royal Caribbean Cruises (NYSE: RCL), Carnival Cruise (NYSE: CCL) and Norwegian Cruise Line (NASDAQ: NCLH) traded sharply lower on Friday afternoon.What Happened: The Cruise Lines International Association (CLA) issued a statement announcing its ocean-going cruise line members will voluntarily extend the suspension of cruise operations from U.S. ports until Sept. 15, 2020.Cruise liners have been hit due to the coronavirus pandemic that's continuing to harm the travel industry. The current "No Sail Order" issued by the U.S. Centers for Disease Control and Prevention was expected to expire on July 24.Voluntarily Extension: "Due to the ongoing situation within the U.S. related to COVID-19, CLIA member cruise lines have decided to voluntarily extend the period of suspended passenger operations," CLA said in a statement.The extension will allow the cruise lining association to consult with the CDC on measures that will be appropriate for the eventual resumption of cruise operations.See Also: Here's How Long Carnival, Norwegian And Royal Caribbean Can Last Without RevenueCruise Line Price Action: Carnival Cruise shares were down 5.95% at $17.71 at the time of publication. The stock has a 52-week high of $51.94 and a 52-week low of $7.80.Royal Caribbean Cruises shares were down 7.31% at $55.04. The stock has a 52-week high of $135.32 and a 52-week low of $19.25.Norwegian Cruise Line shares were down 7.46% at $17.91. The stock has a 52-week high of $59.78 and a 52-week low of $7.03.See more from Benzinga * Morgan Stanley Deboards From Cruise Lines, Bearish On Carnival, Norwegian And Royal Caribbean * Why Norwegian Cruise Line's Stock Is Moving Higher Today * Norwegian Cruise Line Shares Fall On Mixed Q1 Report, CEO Says 'We Have Taken Decisive Action'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Shares of major cruise lines sank in Friday trading after Cruise Lines International Association (CLIA) announced a voluntary suspension of operations from U.S. ports until September 15 due to the COVID-19 outbreak. The current no-sail order was set to expire on July 24. "[I]t is increasingly clear that more time will be needed to resolve barriers to resumption in the United States," the association said in a statement. The news sent shares of Norwegian Cruise Line Holdings Ltd. down 7.5% in Friday trading. Carnival Corp. stock was down 6.4%. And Royal Caribbean Cruises Ltd. shares fell 7.3%. Al three are members of CLIA. Cruise line stocks have taken a beating in 2020, with Norwegian down 69.3% for the year to date, Carnival down 65.2% and Royal Caribbean taking a 58.6% tumble. The S&P 500 index is down 4.5% for 2020 so far.
• U.S. stocks fell on Friday after World Health Organization Director-General Tedros Adhanom Ghebreyesus said the world was entering a “new and dangerous phase” of the coronavirus pandemic, with Covid-19 infections still spreading fast. • Cruise lines, including (CCL)(RCL) and (NCLH) have pushed back their plans to resume operations this summer. The Cruise Lines International Association announced on Friday that member companies would keep operations suspended until Sept. 15, 2020.
On June 16, the U.S. Centers for Disease Control and Prevention (CDC) said that it didn't know when it would give the green light for cruise ships to start sailing again. Royal Caribbean (NYSE:RCL) planned to be back in business on Aug. 1. However, the CDC's latest comments suggest fall might be a more likely scenario. RCL stock and the rest of the cruise operators took a hit on the news. Source: Laszlo Halasi / Shutterstock.com What was already a murky situation just got a whole lot murkier.If you are thinking about buying Royal Caribbean's stock on the dip, you might want to consider your options before doing so. InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe easiest way to make a bet on RCL without exposing yourself to excessive company risk is to buy an ETF that owns the cruise operator. Why an ETF for RCL Stock?Recently, the ETF with the highest RCL weighting was the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (NYSEARCA:RCD), at 2.22% of its portfolio, the second-largest holding behind Norwegian Cruise Line Holdings (NASDAQ:NCLH) at 2.25%, and just ahead of Carnival (NYSE:CCL) at 2.16%. Now, while it's true that a 2.22% weighting isn't all that much because it's equal-weighted, you're getting a bunch of the upside without all of the downsides.What do I mean by this?The ETF is equal-weighted. That means each of the 64 stocks starts out each quarter with an approximate weighting of 1.56%. All 64 are rebalanced at the end of the quarter, and then the process starts anew. * 10 Robotics Stocks on the Technological Cutting EdgeThe last would have been in March. The next one should be after the markets close on June 19. As you can see, RCL stock has generated 66 basis points of gains over the past three months - 2.22% less 1.56%. Not surprisingly, in the past three months from March 20 to June 17, Royal Caribbean's stock has more than doubled. A Risk That Is Industry-SpecificI know what you're thinking.If you wanted to bet $1,000 on RCL back in March around the time of the rebalance, today you'd have almost $2,500. If you had invested the same $1,000 in the ETF back in March, today, you'd only have about $1,500.However, the risk you would have taken buying RCL in March, when it might not be sailing for another four to eight months, was significantly higher than investing in 64 consumer discretionary stocks. Many of these companies had online revenue to reduce the pain inflicted by the novel coronavirus.So, unless you have a bunch of stocks in addition to RCL, to undertake the company- and industry-specific risk that presently exists for the cruise industry, to invest at this point is simply foolish. This is especially relevant when you consider that in 22 states, including Florida, Covid-19 is on the increase. Donald Trump might want to sweep this under the rug, but medical professionals can't - and they won't. In recent articles, I have argued that aggressive investors might take a flyer on the cruise stocks. But for everyone else who wants to sleep at night, RCL and its peers ought to be off-limits. Invesco's ETF provides you with an option. The Bottom Line on RCL StockAn analyst from Nomura Securities believes the CDC is to blame for the uncertainty in the cruise industry about when they can go back to sea. "The issue is not that the industry has been passive in developing health protocols. Quite the contrary. In our view, the hurdle lies with the CDC's unwillingness to discuss, debate and mutually implement the highest standards of passenger and crew healthcare," Nomura stated recently. "Their messaging seems to be don't even think about resuming operations, even if most businesses are reopening, resorts and casinos are welcoming guests, and airlines are taking off with many flights near capacity with not a peep of objection from the CDC."While it's true that the cruise lines do appear to be treated differently than American tax-paying companies, it's also true that cruise ships possess a unique set of issues that other travel-related businesses simply don't face.Yes, there have been packed flights, but those are generally for a short duration. As we've seen over the past three months, when things go wrong on cruise ships, they go abysmally wrong - not to mention, deadly. But I digress.Other cruise lines such as Disney (NYSE:DIS) have canceled sailings into October. That may soon be November or later. If you want to bet on Royal Caribbean, Invesco's ETF seems like a smarter way to play it.Will Ashworth has written about investments full-time since 2008. Publications where he's appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing he did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * Top Stock Picker Reveals His Next 1,000% Winner * The 1 Stock All Retirees Must Own * Look What America's Richest Family Is Investing in Now The post How the CDC Put a Wrench in Royal Caribbeanas Plans appeared first on InvestorPlace.