|Bid||29.17 x 1200|
|Ask||29.20 x 1400|
|Day's Range||28.49 - 29.57|
|52 Week Range||10.95 - 30.12|
|Beta (5Y Monthly)||2.36|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 08, 2021 - Jul 12, 2021|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Feb 20, 2020|
|1y Target Est||24.95|
One of the most common questions traders have about stocks is “Why Is It Moving?” That’s why Benzinga created the Why Is It Moving, or WIIM, feature in Benzinga Pro. WIIMs are a one-sentence description as to why that stock is moving. Here’s the latest news and updates for American Airlines, Carnival, Tesla and GE. Traders and investors should take note that American Airlines Group Inc (NASDAQ: AAL) announced it will webcast a live audio feed of its first-quarter 2021 financial results conference call with financial analysts and journalists on Thursday, April 22, at 7:30 a.m. CDT. American Airlines says the webcast will be available on a listen-only basis here. Tesla Inc (NASDAQ: TSLA) traders and investors should mark their calendars: The EV-maker announced Friday it will post its financial results for the first quarter of 2021 after market close on Monday, April 26, 2021. Tesla said management will hold a live question and answer webcast that day at 2:30 p.m. PT (5:30 p.m. ET) to discuss the company’s financial and business results and outlook. Traders and investors can watch the earnings webcast here. Credit Suisse analyst Benjamin Chaiken upgraded Carnival Corp (NYSE: CCL) Friday from Neutral to Outperform and raised the price target from $18 to $40. Argus Research analyst John Staszak also upgraded Carnival from Hold to Buy and announced a $33 price target. Shares of Carnival closed higher Friday by 2.59% at $29.30. UBS reiterated its Buy rating on General Electric Company (NYSE: GE) Friday and raised the price target from $15 to $17. Shares of GE closed higher Friday by 1.12% at $13.60. Photo by Chuck Miller on Flickr. See more from BenzingaClick here for options trades from BenzingaMarkets Close At New All-Time Highs Yet AgainWhat's Going On With GE Stock And Apple Stock Today?© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Shares of Carnival (CCL) have soared by 35% year-to-date and it’s not hard to see why. A potent combination of the economy reopening, a vaccinated populace and pent-up demand for cruises, have fueled the optimistic rally. That said, Deutsche Bank analyst Chris Woronka warns that an over-exuberant outlook might come back to bite the bulls. That’s not to say Woronka has a bearish outlook. In fact, the analyst has made some readjustments to his CCL model to factor in the upbeat mood and “incorporate more bullish assumptions about the trajectory of the recovery.” The problem, says Woronka, is that any upside is already “priced in,” and going by his calculations, the analyst says it is difficult to see an “upside case.” “Putting it all together, if we assume that CCL's EBITDA in 2023 is $1.0 billion higher than it was in 2019 (revenues +5%, margins +150bps) and further assume that the stock can trade at 15x 2023E P/E and 8.8x 2023 EV/EBITDA, before any discounting, we still only arrive at a valuation of $28,” Woronka said. ”As we've noted in the past, the combination of rising multiples on rising expectations, which is what we are continuing to see reflected in the stock (perhaps to an intensifying degree), is likely to present challenges to the bull narrative as the resumption of cruising in key markets actually commences in coming months.” Woronka’s assessment follows Carnival’s Q1 business update. In January, the company guided for average monthly cash burn rate of roughly $600 million in the quarter, but Carnival said the figure came in lower - at $500 million. However, due to “higher restart expenses and timing on certain cap-ex/principal payments,” the cash burn rate is anticipated to once again hit $600 million in fiscal 2Q (May quarter). So, what does it all mean for investors? While Woronka raises his price target from $16 to $25, the figure still suggests downside of ~15% from current levels. Woronka’s rating stays a Hold. (To watch Woronka’s track record, click here) The analyst community is evenly split when considering the cruise operator’s trajectory; based on 4 Buys, Holds and Sells, each, the stock qualifies with a Hold consensus rating. Woronka’s price outlook is roughly in-line with his colleagues’; going by the $24.39 average price target, the shares are anticipated to be changing hands for a 16% discount a year from now. (See Carnival 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. Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Royal Caribbean Holdings (NYSE:RCL) is only about half as big as its rival Carnival Cruise Lines (NYSE:CCL). But as the market opened April 9, the market capitalization of RCL stock was two-thirds that of its larger rival. Source: Laszlo Halasi / Shutterstock.com The difference is in how Royal Caribbean has handled the pandemic. Royal Caribbean was founded by the merger of three Norwegian shippers in 1968 and merged with Greece-based Celebrity in 1997. The company also owns a line called Silversea, a purchase completed just last July. It recently sold its luxury Azamara line to private equity. During the novel coronavirus pandemic, Royal Caribbean also closed a Spanish line called Pullmantur, which it hopes to relaunch under Spanish bankruptcy laws.InvestorPlace - Stock Market News, Stock Advice & Trading Tips During the Pandemic The Silversea and Azamara transactions hint at what Royal Caribbean did to meet the financial stress of the Covid-19 pandemic. It’s true that, like Carnival, Royal Caribbean took on a lot of debt. Royal Caribbean reported net debt of $16.45 billion recently, up 42%. This sustains a cash burn of $250 million to $290 million per month while the ships are docked. It ended 2020 with $4.4 billion in cash. 7 Great Stocks to Buy Under $10 During the pre-pandemic year of 2019, Royal Caribbean had revenue of almost $11 billion and net income of almost $1.9 billion. Like Carnival, Royal Caribbean was ineligible for last year’s big bailout. While based in Miami, its holding company is incorporated in Liberia. To help clear its debt, the company held a $1.5 billion offering of new equity in March. The shares have already recovered from the dilution, opening April 9 at $90 each. The company raised another $1.5 billion in private notes at an interest rate of 5.5%. That money will go toward paying off debt due through 2022. This gives Royal Caribbean a cash runway toward the relaunch of service. Unlike Carnival, it’s not so antsy it is threatening the leave the U.S. market. It has, however, resumed operations in other markets, where it is testing protocols like daily temperature checks. CEO Richard Fain said recently the lines had served 100,000 people since its international relaunch and seen only 10 Covid cases. When U.S. operations resume, vaccinations will be required. Beyond the Pandemic Royal Caribbean says it is seeing enormous pent-up demand for cruising, even when the ships return to the same place they left, as in Singapore. It hopes to return to service in the U.S. as early as July and on the west coast by November. Until recently, the West Coast re-launch was set for mid-2022. To maintain channel loyalty, Royal Caribbean also launched a $40 million “pay it forward” plan for travel agents, with three-year loans up to $250,000 to keep them operating. The Bottom Line During 2019, Royal Caribbean had $3.7 billion in operating cash flow. Its 78 cent/share quarterly dividend cost just over $600 million in 2019 and it had almost $700 million in free cash flow. Most of its stock is held by institutions and mutual funds, with just 27% held by private investors. While Carnival is still controlled by the son of its founder, the RCL founding Wilhelmsen family in Norway sold its 12% stake in 2019. Since the start of 2021, RCL stock is up 20%, against a 32% gain for its larger rival. Since the pandemic low of March 16, 2020, however, RCL is up 177%, which is nearly three times the gain of CCL. Delivery of new ships has been delayed, but almost 52,000 new berths are expected over the next five years. If you’re going to invest in a cruise line, this is the one to buy. At the time of publication, Dana Blankenhorn owned no shares, directly or indirectly, in stocks mentioned in this story. Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at firstname.lastname@example.org, tweet him at @danablankenhorn, or subscribe to his Substack https://danafblankenhorn.substack.com/. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG It doesn’t matter if you have $500 in savings or $5 million. Do this now. Top Stock Picker Reveals His Next Potential 500% Winner Stock Prodigy Who Found NIO at $2… Says Buy THIS Now The post Royal Caribbean Is a More Investable Cruise Line appeared first on InvestorPlace.