Should You Buy Carnival Before It Rallies?
Carnival (NYSE: CCL) (NYSE: CUK) experienced its very worst time when the pandemic forced its ships to shore. This period crushed revenue and pushed costs and debt higher. The world's biggest cruise operator gradually resumed its cruises more than a year ago. In fact, today more than 90% of the fleet is in service.
Yet Carnival shares continue to suffer. They recovered some lost ground last year. But increases didn't last. Concerns about higher interest rates and a weakening economy are weighing on the shares these days. They've lost about 50% year to date. Considering future prospects, should you buy Carnival before it rallies? Let's find out.
We'll start by taking a look at the bad news first. Cruise lines including Carnival took on more debt during the earlier stages of the pandemic as their ships remained inactive. Carnival's total long-term debt has swelled to more than $33 billion.
Source Fool.com
