It’s safe to say most of us thought COVID-19 and all that comes with it was about to become a distant memory. However, its delta variant is telling us something different — I mean… just our luck!
The Center for Disease Control and Prevention just said fully vaccinated people should start wearing masks indoors again. Even Dr. Anthony Fauci, the chief medical adviser to the president, warned that the U.S. is going in the “wrong direction” on cases.
I know I’ve been giving you guys all of my top finds lately, but what about all of the stocks to avoid?
It looks like leisure and recreational stocks are going to face yet another difficult season of staying afloat. So in today’s video, I thought I’d flip the script and talk about two cruise line stocks to avoid right now.
But before I get started, remember, it’s not the actual change that drives the price of stocks. It’s the anticipation or perception of change, and at the moment, the outlook for large cruise ships isn’t so solid.
The Cruise Line Stocks to Avoid Right Now: 2 Cruise Ships Names
It’s probably no surprise that Carnival Corp. (NYSE: CCL) is one of the cruise line stocks I’d avoid right now.
With a portfolio of 10 different brands in North America, Asia, Australia and Europe, Carnival is one of the largest cruise companies in the world.
But it’s also issued a ton of new stock and debt this past year…
Carnival’s lost about $9 billion over the past 12 months trying to keep itself afloat during the COVID-19 pandemic. So there’s a lot of debt to repay.
And the past three quarters have seen nothing but negative earnings surprises, which is terrible for long-term growth.
I see Carnival’s price trading even lower because the stock has technically been breaking down since May.
Check out my short video below to learn more about the cruise line stocks to avoid right now and how these names are ripe to see selling pressure in light of renewed COVID-19 fears.
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