Up Over 80% From Covid Lows, Is Carnival Stock A Buy?

Up Over 80% From Covid Lows, Is Carnival Stock A Buy?

SHANGHAI, CHINA - OCTOBER 22: The first built-in-China large cruise ship (H1508), a Vista-class ship ... [+] owned by CSSC Carnival Cruise Shipping Co., Ltd, is under construction at a shipyard of Shanghai Waigaoqiao Shipbuilding Co Ltd, a subsidiary of China State Shipbuilding Corporation Limited (CSSC), on October 22, 2021 in Shanghai, China. (Photo by VCG/VCG via Getty Images) Carnival stock (NYSE: CCL), the largest cruise line operator in the U. S., has seen its stock decline by almost 16% over the past month (about 21 trading days), compared to the broader S&P 500, which gained about 3% over the same period. The recent decline comes due to a wider than expected Q3 loss, a revised price target on the stock by a brokerage firm, and some weakness in the broader travel space amid headwinds to the Chinese economy. That said, things are slowing, but surely looking up for the leisure cruising industry, which bore the brunt of the Covid-19 pandemic. Carnival resumed sailing from U. S. ports in July and is likely to have about 50% of its fleet in revenue operations by the end of this month. Demand is also likely to look up, with Covid-19 infections in