Carnival Corporation stock closes in green and snaps six-day losing streak

Carnival Corporation (NYSE:CCL) stock closed positively on Tuesday, snapping a six-day slump during which it lost 16.5%.

Shares of the British and American cruise operator closed +0.97% at $14.54, above its 52-week low of $10.84. The stock has lost 19.40% in value in the last 12 months.

Carnival has closed in the red for three trading days in August. During the month of July, it closed positively for 9 out of 19 sessions.

Looking at Seeking Alpha’s Quant Ratings, the Miami, Florida-based company has a Strong Buy recommendation with a score of 4.84 out of 5. The company received an A for profitability and an A+ for growth prospects. The stock also received a C for its valuation, compared to a C+ six months ago.

Turning to the Wall Street community, about 21 out of 28 analysts gave the stock a Buy or higher recommendation, with 5 recommending a Hold, and the remaining 2 recommending a Strong Sell.

Seeking Alpha analysts are optimistic and gave the stock a Buy rating.

Carnival was among the most shorted S&P 500 stocks in the month of June.

“Carnival is in an unrivaled position within the cruise industry, and recent announcements show that management only expects this to continue,” reads a report by Seeking Alpha analyst Vincent Phan. “The main risks to Carnival surround its bottom line, but these have clear mitigants, and the company should be able to operate with this strength for the foreseeable future,” he added.

Another report by Seeking Alpha analyst Felipe Brum noted that Carnival’s Free Cash Flow generation due to higher earnings and lower capex will lead to a better Net Debt/EBITDA ratio, with significantly lower interest expenses.