Is Carnival Stock a Buy on the Dip?

's (NYSE: CCL) business made a massive recovery last year, and its stock gained 130%. But so far in 2024, it's down 18%. So is the cruise line giant's recovery story over, or is this an opportunity to buy it on the dip?

Carnival stock was risky during the period of the pandemic when the company wasn't producing any revenue, and investors who took a chance on the stock while it was in the doldrums were well rewarded when it rebounded last year. Carnival is still benefiting from pent-up demand for cruises and limited industry capacity. It entered 2024 in its best-ever booked position, and it looks like that's going to continue in the near term.

Last week, it reported that it had surpassed guidance across the board in its fiscal 2024 first quarter (which ended Feb. 29), with record Q1 revenue of $5.4 billion and adjusted earnings before interest, taxes, deprecation, and amortization (EBITDA) of $871 million, up from $382 million in the prior-year period. Customer deposits reached an all-time high of $7 billion.

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Source Fool.com