Carnival Stock Story

CCL
 Stock
  

USD 10.72  0.18  1.71%   

Today we may see the proof that Alcoa Corp would recover much slower from the current slip as its shares went up 5.86% to Carnival Corp's 10.6736%. As many rational traders are trying to avoid consumer cyclical space, it makes sense to summarize Carnival Corp a little further and understand how it stands against Alcoa Corp and other similar entities. We are going to summarize some of the competitive aspects of both Carnival and Alcoa.
Published over a month ago
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Are retail investors acquiring Carnival Corp (NYSE:CCL) or Alcoa Corp?

By analyzing existing fundamental indicators between Carnival Corp and Alcoa, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Alcoa with a short position in Carnival Corp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Carnival Corp has an asset utilization ratio of 8.99 percent. This denotes that the company is making $0.0899 for each dollar of assets. An increasing asset utilization means that Carnival Corp is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Carnival Corp's Liquidity

Carnival Corp financial leverage refers to using borrowed capital as a funding source to finance Carnival Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Carnival Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Carnival Corp's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Carnival Corp, but it might be worth checking our own buy vs. sell analysis

Is Carnival Corp valued accurately by the market?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Carnival Corp revenue. Based on the latest financial disclosure, Carnival Corp reported 3.5 B of revenue. This is 50.91% lower than that of the Consumer Cyclical sector and significantly higher than that of the Travel Services industry. The revenue for all United States stocks is 62.9% higher than that of Carnival Corp. As for Alcoa Corp we see revenue of 12.57 B, which is much higher than that of the Travel Services

Carnival3.5 Billion
Sector0.0
Alcoa12.57 Billion
3.5 B
Carnival
Sector
12.6 B
Alcoa

Will Carnival Corp new hike continue?

New coefficient of variation is at -498.54. Carnival Corp exhibits very low volatility with skewness of -0.2 and kurtosis of 0.21. However, we advise investors to further study Carnival Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Carnival Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Carnival Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Carnival Corp Implied Volatility

Carnival Corp's implied volatility exposes the market's sentiment of Carnival Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Carnival Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Carnival Corp stock will not fluctuate a lot when Carnival Corp's options are near their expiration.

Our Final Take On Carnival Corp

While few other entities in the travel services industry are either recovering or due for a correction, Carnival may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor drop any shares of Carnival Corp at this time. The Carnival Corp risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Carnival Corp.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Carnival Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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