The Worst Mistake Carnival Stock Investors Can Make Right Now
It's awfully tempting to nibble on cruise line stocks these days. Industry leader Carnival (NYSE: CCL) (NYSE: CUK) is trading 72% lower in 2020, and smaller rivals Norwegian Cruise Line Holdings (NYSE: NCLH) and Royal Caribbean Group (NYSE: RCL) are also among this year's biggest losers.
With so many market darlings trading sharply higher and the market now firmly in positive territory, there's going to be some bottom feeding among the cruise line stocks. It could be a big mistake. A fatal flaw in chasing a sinking stock lower is assuming that the ceiling is suddenly higher. Carnival's stock can triple from here and still not be where it was when the year began. That's the upside only if the cruise line operator can get back to where it was at the end of 2019. Unfortunately for Carnival and its speculators, it's not going to return to form anytime soon.
Image source: Getty Images.
Source Fool.com
