2 Reasons to Buy Carnival Cruise
America is starting to reopen its economy, and this is great news for tourism companies like Carnival Corporation (NYSE: CCL) (NYSE: CUK). The cruise ship operator has seen its share price rocket from a low of $7.80 in early April to $19.44 as of Monday's market close. That's a 149% surge in two and a half months, and the rally looks far from over. While nothing is guaranteed, the battered tourism company has several bullish tailwinds that could send its share price even higher.
First, governments are beginning to lift restrictions on tourism. Second, Carnival can survive in a low-revenue environment because of its strong balance sheet and liquidity. And finally, the company's valuation is still very low compared to its pre-crisis revenue and earnings.
Source Fool.com
