Why Carnival Is Poised to Underperform

Brian D. Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, cruise-line operator Carnival has received a distressing two-star ranking.

With that in mind, let's take a closer look at Carnival and see what CAPS investors are saying about the stock right now.

Carnivalfacts

Headquarters (Founded)

Miami (1974)

Market Cap

$28.7 billion

Industry

Hotels, resorts and cruise lines

Trailing-12-Month Revenue

$15.4 billion

Management

Chairman/CEO Micky Arison (since 2003)
Vice Chairman/COO Howard Frank

Return on Equity (Average, Past 3 Years)

7.5%

Cash/Debt

$465.0 million / $8.9 billion

Dividend Yield

2.7%

Competitors

Genting Hong Kong Limited
Royal Caribbean Cruises
TUI


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 27% of the 508 members who have rated Carnival believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, portastatic, highlighted Carnival as a particularly untimely selection:

Public perception and financial ramifications following recent issues, including "sewer ship" and [Costa Concordia] disaster will weigh down [Carnival]. Decreased bookings will follow. Thumbs down for the next year.

If you want market-topping returns, you need to protect yourself 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 2013." 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 TrackPoisedTo CAPS account.

The article Why Carnival Is Poised to Underperform originally appeared on Fool.com.

Fool contributor Brian Pacampara and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement