Wall Street's rolling and there are nearly twice as many stocks hitting fresh 52-week highs than lows. But some notable names have sunk to their lowest points in more than a year. These include Carnival (NYSE:CCL), J.C. Penney (OTC:JCPN.Q), and Rite Aid (NYSE:RAD).

This may not be the shiniest hour for the cruise industry, retailing, and drugstore operators, but many of their peers are holding up just fine. Let's take a closer look at why the three investments have fallen out of favor.

The P&O Pacific Jewel ship cruising on the water with a bridge in the background.

Image source: Carnival Corp.


The world's largest cruise line operator is hitting some choppy seas these days. Despite a buoyant economy that typically bodes well for the travel industry, net cruise revenue rose 5% in Carnival's latest quarter on a constant currency basis. Adjusted earnings declined. The financial results were actually better than Carnival had been forecasting three months earlier, but it hosed down its full-year profit guidance for the second time in as many quarters.

There are plenty of things weighing on Carnival, particularly the lower yields it's having on its ships sailing out of Europe and Asia and the U.S. government's policy change on Cuba that nixed that country as a port of call. Wall Street doesn't take kindly to downward revisions, but Carnival's bookings are running ahead of where they were a year ago.

J.C. Penney

The perky economy is giving shoppers more wiggle room in their sprees, but not all mall chains are built the same. J.C. Penney continues to be a laggard among department store operators, and there are fears that it will have no choice but to file for bankruptcy. J.C. Penney reportedly hired restructuring advisors earlier this month, potentially a last-ditch effort to avoid filing for bankruptcy.

Net sales are falling for the third year in a row, and J.C. Penney has posted annual losses for the past eight years. There are plenty of retail chains posting annual profitability and positive comps despite the e-commerce challenge. J.C. Penney just can't resonate with consumers, and time is starting to run out.

Rite Aid

There doesn't seem to be a lot of love for Rite Aid after a pair of botched takeover attempts and a partial asset sale. Life as a swinging single has been pretty hard for the struggling drugstore chain. Rite Aid posted flat revenue in its latest quarter with an adjusted loss that was twice as large as analysts were expecting.

Rite Aid had to execute a 1-for-20 reverse split in April to achieve exchange-listing compliance, but that's only making investors less confident in the stock. The stock seemed as if it was turning the corner when it soared 21% the day it announced a partnership with the world's largest e-tailer late last month to make 100 Rite Aid stores package pickup locations, but that optimism didn't last.

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