Is Royal Caribbean Stock a Buy?
A lot of the bullish shine has left the cruise line stocks these days. All three publicly traded players suffered double-digit percentage declines last week, and Royal Caribbean (NYSE: RCL) enters the new week trading nearly 40% below the high it set three weeks ago.
The near-term outlook isn't pretty. It's been more than three months since its last revenue-generating cruise returned to its debarkation port. Royal Caribbean has pushed out future sailings several times, and we're now down to mid-September as the earliest possible resumption date for the industry. With COVID-19 cases continuing to surge in U.S. port states and tens of thousands of crew members still on these ships as the cruise industry fumbles the repatriation process, one would have to have a high risk threshold to buy into cruise line stocks right now. If you feel compelled to take a chance on this volatile travel niche Royal Caribbean continues to be the smartest choice for investors.
Image source: Royal Caribbean.
Source Fool.com
