Could Carnival Cruises Be a Millionaire-Maker Stock?
You can almost hear the waves crashing against the ship as you taste some of the midnight buffet samplings on your plate and watch your friend fumble in an attempt to woo a fellow passenger. A cruise vacation is a feast for the senses, but for more than a year it's been off the menu for travelers. Now, the industry's painful hold could be over in as little as two months.
Carnival (NYSE: CCL) (NYSE: CUK) operates the world's largest fleet of cruise ships. It has returned to highly limited watery escapes in select international markets, but it's not going to return to profitability until a full return to stateside sailings. The U.S. Centers for Disease Control and Prevention has relaxed its guidelines for a return to sailing, but shares of all three cruise lines have not moved higher on the news of a potential mid-July restart. Investors aren't necessarily skeptical of the recovery. The problem here is that the shares have already discounted a return to pre-pandemic levels. With risks still high and the stock already bumping its head against the enterprise value ceiling, it's going to be a challenge for Carnival to be a millionaire maker for investors.
Image source: Carnival.
Source Fool.com
