Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cruise operator Carnival
With that in mind, let's take a closer look at Carnival's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Miami (1974)|
|Market Cap||$25.7 billion|
|Industry||Hotels, resorts, and cruise lines|
|Trailing-12-Month Revenue||$16.0 billion|
|Management||Chairman/CEO Micky Arison (since 2003)
CFO David Bernstein (since 1998)
|Return on Equity (average, past 3 years)||8%|
|Cash/Debt||$471.0 million / $9.5 billion|
Genting Hong Kong
Royal Caribbean Cruises
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 25% of the 500 members who have rated Carnival believe the stock will underperform the S&P 500 going forward.
They have hedged fuel somewhat, but still have exposure to rising fuel costs. They currently trade at 18x the high end of their own guidance for 2012. I think that multiple is a bit high for their growth rate. If earnings came in below the low end of their range, that means their trading at over 20 x forward earnings. Probably won't nosedive because of the yield, but definitely not an outperformer. Over 5 years though it's probably a good business with boomer demographics.
If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.