Is it Time to Buy Carnival Stock?
Long-term investing is the key to sustainable returns in the stock market, but sometimes it can backfire spectacularly. For example, if you purchased $1,000 of Carnival Corp. (NYSE: CCL) (NYSE: CUK) stock 10 years ago, you would have just over $500 today -- a loss of around 50%. That means more than a decade of growth and billions in stock buybacks essentially evaporated during the coronavirus pandemic.
The good news is that Carnival's business is finally getting back on track. And the company aims to regain the value it lost over the previous years. Let's dig deeper into the pros and cons of the stock to decide if investors should give the iconic cruise company a second chance.
While there is a lot of talk about the ostensibly terrible U.S. economy (analysts at UBS put the near-term likelihood of recession at 93%), the doom and gloom isn't showing up in Carnival's results. On the contrary, business is booming. Third-quarter revenue rose 3.3% to $8.15 billion based on modest increases in tickets and onboard sales, which typically refers to the purchase of food and drinks during cruises.
Source Fool.com
