{"id":237221,"date":"2022-10-17T12:45:00","date_gmt":"2022-10-17T12:45:00","guid":{"rendered":"https:\/\/omni48.com\/?p=237221"},"modified":"2022-10-17T13:01:01","modified_gmt":"2022-10-17T13:01:01","slug":"3-red-flags-for-carnival-stock","status":"publish","type":"post","link":"https:\/\/omni48.com\/news\/3-red-flags-for-carnival-stock","title":{"rendered":"3 Red Flags for Carnival Stock"},"content":{"rendered":"<p>Down 67% year to date, Carnival Corporation (NYSE: CCL) has probably landed on some value investors&#8217; radar . But a cheap stock doesn&#8217;t always mean a good deal. Let&#8217;s discuss three red flags that could make the cruise company underperform over the long term. 1. The massive debt load Like most cruise companies, Carnival was hurt by the COVID-19 pandemic, especially after the U.S. Centers for Disease Control&#8217;s (CDC) no-sail order scuttled its operations for much of 2020. To survive the crisis, management turned to debt markets. As of the third quarter, Carnival reports $28.5 billion in long-term debt &#8212; up from just $9.7 billion at the end of 2019. The leverage will be a long-term drag on cash flow and earnings because debt generates interest expense and has to be repaid. Image source: Getty Images. Recent results are also a mixed bag. While third-quarter revenue jumped 688% year over year to $4.3 billion because of easy comps against the<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are rough waters ahead.<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[36,1],"tags":[],"class_list":["post-237221","post","type-post","status-publish","format-standard","hentry","category-markets","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/omni48.com\/api\/wp\/v2\/posts\/237221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/omni48.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/omni48.com\/api\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/omni48.com\/api\/wp\/v2\/comments?post=237221"}],"version-history":[{"count":0,"href":"https:\/\/omni48.com\/api\/wp\/v2\/posts\/237221\/revisions"}],"wp:attachment":[{"href":"https:\/\/omni48.com\/api\/wp\/v2\/media?parent=237221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omni48.com\/api\/wp\/v2\/categories?post=237221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omni48.com\/api\/wp\/v2\/tags?post=237221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}