Sign InCarnival Corporation & plc Stock Shows Potential for Growth Despite Struggles
Summary
Carnival Corporation & plc's stock is expected to continue its upward trend in the upcoming trading day based on solid fundamentals and positive market sentiments, but caution is advised due to the high RSI level suggesting the stock may be overbought.
Fundamental Analysis
Carnival Corporation & plc (Ticker: CCL) recently closed at $18.83 on June 30, 2023, up 1.67 (9.73%) from the previous trading day. The increase in share value marked an improvement from the day's low of $17.62 and reached the highest point in a year at $18.88. Carnival, with a market cap of $23.84 billion, continued to experience heavy trading with a volume of 113.89 million, compared to an average volume of 39.08 million.
The company's earnings per share (EPS) for the period stood at -$2.76, and it recorded a negative Price-to-Earnings (PE) ratio of -6.82. These figures indicate the company's struggle to find profitability in recent times, which is worth monitoring in future assessments. The outstanding shares for Carnival Corporation & plc are approximately 1.27 billion.
Analysts projected a range for the share price of CCL on the high end at $38 and the low end at $9, with a median target of $20 and a consensus at $21.35. This data indicates that analysts see potential growth in the stock's future performance.
The next earnings announcement for Carnival Corporation & plc is set for September 28, 2023. Investors will be watching how the company performs financially in that period, which could significantly influence the stock's position. The discounted cash flow (DCF) for the corporation stands at $22.24, suggesting potential undervalue in the current price.
Technical Analysis
A review of the technical indicators offers insight into the stock behavior, particularly for trading and timing buying or selling. The Relative Strength Index (RSI14) for Carnival Corporation & plc sits at 81, which typically means the stock may be overbought. This level suggests caution for investors considering a purchase, as it could see a price adjustment or consolidation in the short term.
CCL's 50-day moving average is $11.98, well below the recent closing price, hinting at an uptrend. In contrast, the 200-day moving average at $10.14 signifies a positive long-term trend. Moreover, the Moving Average Convergence Divergence (MACD) is at 1.93, indicating positive momentum in the shift towards bullish territory.
News Analysis
Recent news reveals multiple analysts upgrade Carnival's position, spurring recovery through bullish upgrades, marking the stock's best weekly, monthly, and quarterly gain in 36 years. Increased confidence in Carnival Corporation & plc's stance is further driven by cooling inflation aligning with the Federal Reserve's target.
Predictions and Conclusion
Given the current market conditions and news sentiments, the stock of Carnival Corporation & plc is likely to continue its upward trend in the upcoming trading day on July 03, 2023. Over the coming week, the stock price could experience fluctuations, though the general course is anticipated to favor the upside due to solid fundamentals and positive market sentiments.
However, caution is advised based on the high RSI level, indicating the stock might be overbought. Investors looking to buy should be aware of potential short-term price adjustments but be reassured by the positive long-term trend.
Based on the above analysis, Carnival Corporation & plc's stock is a Buy. There's an upward trend visible in the performance backed by positive news sentiments and technical indicators. Nevertheless, investors are reminded to approach with awareness of possible short-term volatility.
