Carnival (CCL) Stock: Why Now Is The Time To Buy

Carnival Corp CCL Stock News

Carnival Corp (NYSE: CCL) has been an interesting stock to watch this year. As a cruise services provider, the company has felt serious pain in the midst of the COVID-19 pandemic. After all, everyone is being told to stay home and stay safe. With a business centered around vacation travel, it only makes sense that the stock fell from over $51 per share to less than $8 per share as a result of the pandemic.

Nontheless, the sun will come out tomorrow, and for Carnival Corp and its investors, there’s no better reason to be excited.

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CCL Stock Will Benefit Greatly From The Coming Availability Of A COVID-19 Vaccine

COVID-19 has been Carnival Corp’s kryptonite. No matter what the company did, it wasn’t able to stave off the damaging effects of the virus on its business. However, the stock recently saw dramatic gains, climbing from $13 to around $19 per share after news broke surrounding positive data from a COVID-19 vaccine.

Pfizer and BioNTech colaborated to develop a vaccine for the novel coronavirus, and have done just that. Recent data shows immune effects in around 90% of the patients it was given to. Moreover, news breaks have suggested that the vaccine will receive Emergency Use Authorization from the FDA in the coming weeks.

If that’s the case, the vaccine could be on the market by the end of the year.

Sure, it will take some time to ramp up production, but with the entire scientific world involved in bringing COVID-19 to its knees, the vaccine could be widely available as soon as next year.

That all bodes well for CCL.

Think about it. Even thought the United States is no longer locked down, consumers are scared. We have been told that this virus could KILL us. That’s a painful reality that will stop people from traveling, even if there’s no ban in place.

Nonetheless, when a vaccine becomes widely available, consumers will feel safe. Not only will they feel comfortable in leaving home, they’ve been so couped up that there will llikely be a burning desire to take a trip. That bodes well for CCL.

Ultimately, when the vaccine is available and the pandemic comes to an end, there’s a strong chance that Carnival Cruise Lines will see dramatic gains in revenue, followed by dramatic gains in the value of the stock.

The Bottom Line

The bottom line is that COVID-19 was painful for everyone, especially those in the travel industry. However, with a vaccine likely around the corner, life will soon be back to normal and those joys that were taken from consumers will be far more appealing. Carnival is in a prime position to take advantage of that trend. As such, CCL stock should be on your watch list.

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