The Carnival Radiance cruise ship at the Avalon, California, harbor on May 19, 2023.
Aaronp/bauer-griffin | Gc Images | Getty Images
The NASDAQ experienced some losses in late June, but it quickly rebounded and finished the month with a 30% increase for the year so far. However, the gains can be attributed to only a few companies, including Nvidia, Meta, and Tesla. This concentration of gains is not uncommon but can be seen as a bearish sign. Thankfully, market breadth has improved, and we have seen leadership expanding to include cyclical sectors and industries.
While these companies have become expensive relative to the broader market, some analysts are downgrading them, leading investors to look for alternatives if these stocks lose momentum.
More from Personal Finance:
- As July 4 motorists kick off summer travel, how to save on gas
- What to know about your rights as an air traveler
- How travelers are booking vacations amid inflation
Cruise companies, such as Carnival Cruise Line, Norwegian Cruise Line, and Royal Caribbean International, could be a promising investment option. Despite being hit hard during the pandemic, these companies have shown resilience and are attracting new customers. Additionally, the decline in fuel prices and the possibility of releasing restricted cash reserves could further benefit the industry.
Carnival seems best bet for growth
Carnival is in a favorable position to take advantage of these trends. Its balance sheet could receive a significant boost, and the management is focused on returning profit margins to previous levels. This could lead to the company achieving pre-pandemic multiples and potentially reaching a stock price of $23 next year.
Considering the possibility that popular stocks may be overvalued, it may be wise to explore other areas of the market. With various tailwinds and the strong consumer demand, investing in cruise lines could be a lucrative move this summer.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
