(NYSE: CCL) is benefiting from renewed investor optimism. The cruise line's shares have soared almost 40% this year, despite falling 37% in the last three months. This performance is thanks to the business posting strong financials. Q3 revenue of $6.9 billion was a record, and Carnival is now back to posting positive net income. 

Investors who missed out on the consumer discretionary stock's rally in 2023 might be compelled to buy shares. They trade at a price-to-earnings ratio of just 5.8, which is less than a third the average multiple over the past 10 years. 

But even though that valuation looks incredibly attractive, I think it's a good idea to avoid Carnival stock. Here are two important reasons why that's a smart move. 

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Source Fool.com