2 Risky Stocks to Avoid Right Now

While the stock market generally moves upward over the long term, some companies lag behind their peers. This underperformance can happen for several reasons, including unsustainable cash burn and weak balance sheets. Let's discuss why Carnival Corporation (NYSE: CCL) (NYSE: CUK) and Lucid Group (NASDAQ: LCID) could hurt your portfolio this week and beyond.  

Founded in 1972, Carnival helped popularize the vacation cruise industry in the United States and other countries. But while it has richly rewarded investors for decades, that all ended with the COVID-19 pandemic, which shut down operations and continues to haunt its balance sheet. The company is still far from bouncing back. 

With first-quarter revenue of $4.4 billion (95% of 2019 levels) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $382 million, it is tempting to assume Carnival is close to recovering from the impacts of the COVID-19 pandemic, but this is far from the case. With $32.7 billion in long-term debt, the company's biggest challenge is nowhere near resolution. 

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Source Fool.com