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Is Carnival Stock Worth Your Attention Right Now?


May. 19 2020, Published 10:44 a.m. ET

Carnival (NYSE:CCL) stock rose 15.2% on Monday and closed at $14.72 with a market cap of $10.7 billion. The cruise operator’s stock price rose due to hope about a COVID-19 vaccine. Moderna and Novavax (NASDAQ:NVAX) reported positive developments for their potential coronavirus vaccines. Read Coronavirus Vaccine: Novavax and Moderna Lead the Race to learn more.

Businesses have started to reopen in phases, which boosted investors’ confidence. According to a MarketWatch report, “The cruise stocks rallied after some Wall Street analysts were mostly upbeat on the sector, with J.P. Morgan saying he believed cruise demand among more loyal customers remained intact, while investor sentiment likely hit bottom.”

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Carnival reported revenue of $4.8 billion in Q1

In the first quarter, which ended in February, Carnival reported an EPS of $0.22 compared to $0.49 in the first quarter of fiscal 2019. The earnings missed analysts’ consensus estimate of $0.26 per share. Carnival generated revenue of $4.79 billion—a growth of 2.5% from the first quarter of fiscal 2019. The company beat analysts’ consensus revenue expectation of $4.68 billion.

Analysts’ recommendations for Carnival stock

Among the 18 analysts covering Carnival stock, four recommend a “buy,” 12 recommend a “hold,” and two recommend a “sell.” The mean target price of $21.80 implies a 48.1% upside from the closing price of $14.72 on Monday.

Stock returns

Carnival stock has generated returns of -73% in the last 12 months and 17% in the last month. The stock is trading 89% above its 52-week low of $7.80 and 73% below its 52-week high of $53.86.

On Monday, Carnival stock was trading 9.6% above its 20-day moving average of $13.43. Meanwhile, the stock is trading 9.7% above its 50-day moving average of $13.42 and 48.8% below its 100-day moving average of $28.74. The stock’s 14-day relative strength index score of 54 suggests that the stock isn’t overbought or oversold.

Carnival stock has an upper Bollinger Band level of $16.07. The company’s middle Bollinger Band level is $13.43, while its lower Bollinger Band level is $10.79. The stock closed near its middle Bollinger Band level, which also suggests that the stock is neutral.

On Monday, Royal Caribbean Cruises (NYSE:RCL) and Norwegian Cruise Line (NASDAQ:NCLH) stocks returned 16.7% and 18.0%, respectively. On the same day, the Dow Jones Industrial Average rose by 912 points or 3.85%. Also, the Nasdaq Composite and the S&P 500 gained 2.44% and 3.15%, respectively.


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