This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

3 Stocks Investors Are Selling but Should Be Buying (Update 1)

Carnival Corporation (CCL - Get Report)

Carnival shares have been hammered since its Costa Concordia cruise liner capsized off the coast of Italy on Jan. 13, causing the deaths of 25 passengers. The stock is down nearly 13% since the accident occurred, and 25% in the past year. On Monday, Carnival had another accident, this time aboard its Costa Allegra, where a fire broke out on its way to the Seychelles from Madagascar. There were no reported injuries.

Sandy Villere describes Carnival as "down and out," saying people "hate it" right now, but he believes this is actually a great time to buy the stock and tap into its virtual duopoly with Royal Caribbean Cruises (RCL - Get Report).

"In 12 months people will forget the ship ever crashed," Villere explains. He thinks the stock will inevitably return to pre-accident levels of around $35, resulting in a 15%-plus return. Not to mention the 3%-plus forward dividend yield investors will enjoy.

"After 9/11, people thought they would never fly again," he says. "It was scary at the beginning, but over the long run, people started flying again." Villere estimates that 80% of Carnival's clients are repeat customers, which indicates the business has a solid base to rely on.

Wall Street is mildly bullish on the stock with 12 of the 20 analysts covering Carnival at either strong buy (6) or buy (6), and the 12-month median price target sitting at $34.50, implying potential upside of 16.6% from Tuesday's close at $30.01.

Carnival is currently in the final month of its fiscal first quarter, and it plans to report its financial results on March 19. The average analysts' view is for a profit of a penny per share on revenue of $3.56 billion.

Check out TheStreet's quote page for Carnival Corporation for year-to-date share performance, analyst ratings, earnings estimates and much more.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BWA $60.79 0.00%
CCL $46.38 0.00%
RCL $72.47 0.00%
SWN $25.78 0.00%
V $67.48 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs