2 Travel Stocks That Have Been Running at a Loss in 2022

NYSE: CCL | Carnival Corporation  News, Ratings, and Charts

CCL – The travel industry has been under pressure due to sky-high inflation and the rising odds of a recession. Moreover, the industry is struggling with an acute labor shortage. Hence, fundamentally weak travel stocks Carnival Corporation (CCL) and Norwegian Cruise Line (NCLH), which have incurred significant losses this year, could be best avoided. Read more….

The cruise industry is sailing in choppy waters as it deals with a storm of red-hot inflation and consequent interest rate hikes, which might push the economy into a recession. Wall Street analysts have already cut their 2022 revenue estimates for cruise operators by 5% on average.

On top of it, the travel industry is experiencing a severe staffing shortage, particularly for customer-facing roles. Industry CEOs acknowledge that they are struggling to add staff to meet demand.

Moreover, a recovery in global business travel spending to pre-pandemic levels is likely to be delayed because of persistent inflation alongside other factors such as high energy prices.

Given this backdrop, it might be best to avoid travel stocks Carnival Corporation & plc (CCL - Get Rating) and Norwegian Cruise Line Holdings Ltd. (NCLH - Get Rating), which have been running at a loss this year.

Carnival Corporation & plc (CCL - Get Rating)

CCL operates as a leisure travel company. Its ships operate under the Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia), Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises (UK), and Cunard brand names.

In August, it was reported that CCL’s Princess cruises canceled 11 sailings aboard the Diamond Princess. The company stated that it faced labor issues as travelers flocked back to cruises post-pandemic and its ships resumed sailing with increased occupancy.

CCL’s forward EV/Sales multiple of 2.96 is 185% above the industry average of 1.04.

In the third fiscal quarter that ended August 31, CCL’s operating costs and expenses increased 76.1% year-over-year to $4.59 billion. Its operating loss came in at $279 million, while its adjusted net loss amounted to $688 million. The company’s loss per share amounted to $0.65.

Analysts expect CCL’s EPS to be negative $0.86 for the fiscal fourth quarter ending November.

The stock has declined 73.2% over the past year to close its last trading session at $6.38. It has declined 70% year-to-date.

This bleak outlook is reflected in CCL’s POWR Ratings. The stock has an overall D rating, which equates to a Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

CCL is graded an F in Stability and Sentiment and a D in Quality. It is ranked #2 out of the four stocks in the F-rated Travel – Cruises industry.

In addition to the POWR Rating grades we’ve stated above, one can see CCL’s Growth, Value, and Momentum ratings here.

Norwegian Cruise Line Holdings Ltd. (NCLH - Get Rating)

NCLH operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally along with its subsidiaries. The company operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands.

In terms of its forward EV/Sales, NCLH is currently trading at 3.70x, 255.8% higher than the industry average of 1.04x. Its forward Price/Sales multiple of 1.06 is 37.8% higher than the industry average of 0.77.

NCLH’s total cruise operating expenses rose 329.8% year-over-year to $1.07 billion in the fiscal second quarter that ended June 30, 2022. Its adjusted net loss came in at $478.30 million, while its adjusted loss per share amounted to $1.14.

NCLH’s EPS is likely to be negative $0.76 for the fourth quarter ending December 2022.

Over the past year, the stock has plunged 54.8% to close the last trading session at $11.91.

NCLH has an overall F grade, equating to a Strong Sell in our POWR Ratings system. The stock has an F grade for Stability and a D for Value, Sentiment, and Quality. It is ranked last in the Travel – Cruises industry.

Click here to access the NCLH rating for Growth and Momentum.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


CCL shares were trading at $6.53 per share on Tuesday afternoon, up $0.15 (+2.35%). Year-to-date, CCL has declined -67.54%, versus a -23.91% rise in the benchmark S&P 500 index during the same period.


About the Author: Kritika Sarmah


Her interest in risky instruments and passion for writing made Kritika an analyst and financial journalist. She earned her bachelor's degree in commerce and is currently pursuing the CFA program. With her fundamental approach, she aims to help investors identify untapped investment opportunities. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CCLGet RatingGet RatingGet Rating
NCLHGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Stock Market Update: It’s Complicated!

The S&P 500 (SPY) may have bounced 17% from recent lows, but the outlook for stocks from here is...in a word...COMPLICATED. Read on to get Steve Reitmeister full market outlook and trading plan for this complicated market environment.

Becoming More Bullish on Stocks, But...

Stocks are on a roll with the S&P 500 (SPY) up more than 10% from the recent lows. Before you start getting too giddy, you should read this updated market outlook and trading plan Steve Reitmeister.

Stock Market Held Hostage

Uncertainty is the term most often applied to this stock market. Uncertainty over tariffs. Uncertainty of whether the S&P 500 (SPY) will fall into bear territory. Uncertainty over what happens next. Steve Reitmeister dives into the uncertainty to make sense of the market in this week’s commentary...

Stock Market Standing on the 50 Yard Line

Steve Reitmeister contemplates where the stock market stands now and what happens next in trying to stay on the right side of the market action. One path points to bear and one to new highs for the S&P 500 (SPY). Which will it be?

Bear or Bull Market?

The S&P 500 is on the brink of bear market territory...but that outcome is not a given at this time. Steve Reitmeister shares insights gleaned from his 45 years of investing to shine a light on current conditions along with his top picks...

Read More Stories

More Carnival Corporation (CCL) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CCL News