CCL Stock Price: Carnival Corp sailing the high seas after as analyst sinks rivals

  • Carnival Corp's are set to extend their gains, contrary to the trend in markets. 
  • An analyst underscored the firm's advantage over rivals in the cruise industry.
  • Further gains depend on health issues, not on Sino-American relations.

As mentioned on Monday – it is enough to run faster than the guy next to you, not quicker than the hungry bear. Carnival Corp's stocks have been benefiting from the cruise company's relative advantage over rivals rather more than any other reason.

CCL's is better-positioned than its peers when it comes to finances – after raising some $2.5 billion. That has been known for a while. The latest boost has come from Benjamin Chaiken, an analyst with with Credit Suisse. His team reached a conclusion that the whole sector may benefit – as cruises may become more affordable than traditional vacations including a flight and staying at a hotel. 

Shares of all top three firms – Carnival,  Royal Caribbean, and Norwegian Cruise Lines – all advanced. The rise is especially impressive amid the fact that early on in the coronavirus crisis, cruise ships were the center of attention.

Moreover, the recent increase has come broader stock markets have tumbled down. The trigger was China's decision to tighten its grip on Hong Kong – a significant escalation in its clash with the US. Sino-American tensions have finally come to haunt markets. 

However, it does not seem to halt Carnival Corp. Luxurious holidays depend on developments in defeating the disease – not geopolitics. Modern, Moderna, a Massachusets-based pharma firm, announced encouraging results early in the week, but scientists were quick to poke holes at the firm's claims, amid a lack of details. 

CCL Stock Dividend

Investors fear that amid falling income and cruise cancelations, NYSE:CCL Over the years, Carnival gradually increased its extra pay. Better prospects for the industry are set to push the stock price and dividends higher. 

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