Both Carnival (CCL) in the Smart Investing Growth & Income Portfolio, and Royal Caribbean Cruises (RCL) in the Growth Portfolio, were up over 5% yesterday, after Carnival reported a blowout first quarter (November year-end).
Both stocks remain extremely undervalued with attractive dividends. They’re excellent longer-term portfolio stocks.
Carnival beat Wall Street’s earnings expectations due to lower fuel costs and a pullback in the strength of the U.S. dollar. However, investors were additionally relieved to know that future cruise bookings remain very strong despite the recent terrorist attack in Belgium.
The CCL share price is on an uptrend and could retrace its 2015 high of 55.77 in the coming months. I expect the stock to pause there before its next run-up. Rating: Strong Buy.
With regard to future price action, RCL has a little upside price resistance at 85, where I expect the stock to pause in its uptrend. Your best-case 2016 scenario is for RCL to return to December’s all-time high of 103.40, giving new investors a potential 29% return!
I do not expect the share price to drop unless unexpected bad news emerges. If you’re interested in RCL, buy now! Rating: Buy.