Robbie Vannucci
Carnival Corporation (NYSE: CCL) shares closed higher on Tuesday, ending a six-day losing streak of 16.5%.
Shares in the British and US cruise operator closed up 0.97% at $14.54, above a 52-week low of $10.84. The stock fell 19.40% in the past 12 months.
Carnival has recorded losses for three consecutive trading days in August. During July, nine of the 19 trading days ended in the green.
Looking at Quantitative Ratings from Seeking Alpha, the Miami, Florida-based company receives a Strong Buy recommendation, with a score of 4.84 out of 5. The stock also received a C grade on valuation, compared with a C+ grade six months ago.
Turning to the Wall Street community, around 21 out of 28 analysts give the stock a buy or higher recommendation, with 5 recommending a hold and the remaining 2 recommending a strong sell.
Seeking Alpha analysts are optimistic and give the stock a buy rating.
Carnival was one of the most shorted stocks in the S&P 500 in June.
“Carnival is in an unparalleled position in the cruise industry, and recent announcements indicate that management only wants that to continue,” Seeking Alpha analyst Vincent Phan wrote in a note. He added: “Carnival faces The main risks surround its earnings, but there are clear mitigations to these risks and the company should be able to operate with this strength for the foreseeable future.”
A separate note from Seeking Alpha analyst Felipe Brum noted that Carnival’s free cash flow due to higher earnings and lower capital expenditures will result in a better net debt/EBITDA ratio and significantly lower interest expenses.
