Should You Wait Until After the Election to Buy Royal Caribbean?
Cruise company Royal Caribbean Group (NYSE: RCL) continues to struggle amid the shoals of COVID-19's tremendous travel and cruise industry fallout, much like the rest of the industry. Its third-quarter results, published on Oct. 29, missed Wall Street analyst consensus estimates in both revenue and earnings per share (EPS), sending the stock lower in trading. Management also guided for a net loss for the fourth quarter and full year 2020, though at this point it doesn't know how big it will be.
The size of that net loss, and the speed of Royal Caribbean's recovery, could depend in part on the outcome of the U.S. presidential election. Who ends up in the Oval Office could have a direct impact whether the CDC's phased-in resumption of cruises continues, or if no-sail orders are reimposed.
For investors looking to add Royal Caribbean shares to their consumer discretionary stocks portfolio, or to increase an existing stake in the cruise company, the election's outcome appears to be of interest, especially for certain trading strategies.
Source Fool.com
