2024-07-28 09:25:00 ET
Carnival (NYSE: CCL) has been generating strong results in recent quarters, but its stock is still nowhere near its levels before the pandemic, when shares were trading above $50. Investors still appear to be hesitant to load up on the stock. After all, if a recession is looming and interest rates don't come down, it could be a tough combination for a travel stock with a high debt load.
But are those fears exaggerated? Can the stock prove its naysayers wrong and be a great buy right now? Here's a closer look at the company's fundamentals to see whether this is a possible gem in the markets or if investors should stay away from the stock.
I love Carnival's business because of its strength -- and it's not just due to pent-up travel demand. Cruises target an older, more affluent customer base that's more resilient to the effects of inflation and a potential recession. That doesn't mean it may not struggle if economic conditions worsen, but it's in a better position to succeed than many other travel stocks .
For further details see:
Down More than 60% From Its Pre-Pandemic Highs, Is Carnival Stock a Steal of a Deal?