Sign InSummary
As of July 5, 2023, Carnival Corporation & plc (CCL) stock has seen an increase in price and trading volume, indicating heightened interest, while technical analysis suggests a possible pullback and fundamental analysis shows the company's lack of profitability; however, with optimistic news about increased bookings and revenue, the stock is expected to perform well in the coming week, although caution is advised due to the high RSI and investors are recommended to hold onto their positions in the mid-to-long term.
Overview
Carnival Corporation & plc (CCL), listed on the NYSE, is an established name in the cruise sector. As of the market close on July 5, 2023, it stands at $19.21, a 1.32 percent or $0.25 increase. The stock has a year-low of $6.11 and an all-time high of $19.55. The target median for the stock is $20, close to its current performance.
Price Analysis and Trading Volume
The trading volume of 55.42 million is considerably higher than the average volume of 41.14 million, indicating a heightened interest in CCL stock. This increased activity often brings about more significant price changes. The price range for the trading day was $18.8 to $19.55, revealing some intra-day volatility.
Technical Analysis
The RSI14 stands at 76, suggesting the stock is overbought and could be due for a pullback. The MACD of 1.98 confirms the stock's recent upward trend.
CCL is well above both its 50-day moving average of $12.55 and its 200-day moving average of $10.27, indicators of its solid bullish trend.
Fundamental Analysis
CCL has a market cap of $24.32 billion and EPS of -2.76, which is a negative figure indicating the company is currently not profitable. It also has a negative PE ratio (-6.96), reinforcing its lack of profitability. The substantial number of shares outstanding (1.27 billion) suggests there is a large supply of the stock available.
Future Predictions
The following trading day (July 6, 2023) is likely to see a small pullback due to overbuying, as indicated by the high RSI. However, upcoming news and events will influence the stock's weekly trajectory.
Given the optimistic news concerning increased bookings and revenue, CCL's performance for the coming week seems inclined to the upside. Still, the high RSI hints towards a possible nearing correction.
The discounted cash flow suggests a value of $22.62 per share, indicating possible upside from the current trading value. The target consensus stands at $21.35, lending additional weight to the anticipated upward momentum.
Earnings and Debt
Though the company reported a GAAP net loss of $407 million due to a high debt burden, it also recorded a record revenue of $4.9 billion and expects increased prices and an occupancy rate exceeding 107% in the coming quarter. It should be noted that CCL has plans to pay down debt, a move likely to positively impact its earnings, as reflected in the upcoming September 28, 2023, earnings announcement.
Conclusion: Hold
Given the currently inflated RSI, it might be prudent for investors to wait for a pullback before entering new positions. However, due to the strong fundamentals, like high bookings and record revenue, investors already holding the stock should maintain their positions, as the mid-to-long term outlook looks promising. Therefore, the final evaluation categorizes CCL as a 'Hold'.
