Please ensure Javascript is enabled for purposes of website accessibility

Carnival Stock: Blood in the Water for Royal Caribbean and Disney

By Rick Munarriz - Apr 18, 2013 at 12:22PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Carnival's failures are opportunities for rivals Royal Caribbean and Disney.

Waters remain choppy for Carnival (CCL -0.15%).

At a time when many consumer stocks are trading near their all-time highs, Carnival stock is trading closer to its 52-week low.

The world's leading cruise line operator has had some unfortunate mishaps on sailings at its Costa and namesake lines, and the market's penalizing Carnival for the setbacks. Analysts have been scaling back their projections, fearing that potential passengers will steer clear of the Carnival brand for their next cruise booking.

This is a dinner bell for Carnival's smaller rivals. Royal Caribbean (RCL -0.05%) is introducing its latest vessel -- Quantum of the Seas -- this week. Online chatter claims that Disney (DIS 3.33%) is about to expand its growing fleet by 50% when it announces two new ships later this month. (A Disney spokeswoman claims that new ships won't be announced at next week's media event, but there's clearly excitement about the cruise industry outside of Carnival.)

Cruising isn't diminishing in popularity. In this video, Rick argues that Carnival stock itself may be the one that's diminishing.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Carnival Corporation Stock Quote
Carnival Corporation
CCL
$13.11 (-0.15%) $0.02
The Walt Disney Company Stock Quote
The Walt Disney Company
DIS
$105.83 (3.33%) $3.41
Royal Caribbean Cruises Ltd. Stock Quote
Royal Caribbean Cruises Ltd.
RCL
$55.38 (-0.05%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.