The pandemic has helped fuel more gains in the tech space, but many sectors still remain well off their pre-pandemic highs, particularly in the travel and tourism sector.
One such company, the largest in its industry, is navigating the latest Covid variant fears with an optimistic look that things could even be back to their pre-pandemic levels by next summer.
The company? Carnival Corporation (CCL). The company has been at the center of on-again/off-again Covid news, as cruise lines were shut down entirely in March 2020 and have been gradually reopening in 2021.
However, Carnival’s CEO sees the full fleet sailing by summer 2021, on the back of vaccines and strong consumer demand for cruises.
While shares have had a partial rebound since pandemic lows, the stock is down about 13 percent over the past year, underperforming the S&P 500 by 37 points. And the company finally had its first profitable quarter in nearly two years, with shares trading at 6 times earnings.
Action to take: Investors might want to consider picking up shares on any bad day for the cruise industry. Given the volatility in the space, that could create plenty of swing trading opportunities. As share don’t pay a dividend at this time, investors should look for quick profits.
For traders, the Omicron news knocked shares down to a level last seen in February when fewer ships were running. The June $25 calls, last going for about $1.13, could see triple-digit moves should the current fears subside.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.