8 Stocks Under $20 To Invest In Now

2. Carnival Corporation & plc (NYSE:CCL)

Share Price: $17.34

Number of Hedge Fund Holders: 53

Carnival Corporation & plc (NYSE:CCL) is the world’s largest leisure travel company, primarily focused on providing cruise vacations. It operates a diverse portfolio of cruise brands, including Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Costa Cruises, AIDA Cruises, and Cunard. The company serves major cruise destinations worldwide, with a fleet of 102 ships visiting over 700 ports. They cater to millions of guests annually, accounting for nearly half of the global cruise market.

The pandemic was tough waters for Carnival Corporation & plc (NYSE:CCL) as the company went from being a profit-making company to a loss-enduring operation. Challenges resulted in debt accumulation, however, management has been recovering well due to its cost-saving efforts, It has limited its new ship orders, and chosen fuel-saving routes for its cruise.

With the easing of the pandemic, the company is now back on track to generating record profits. The fiscal third quarter of 2024 was a depiction of its strong performance. The company generated a net income of $1.7 billion, which was up 60% year-over-year. The quarterly revenue was record high to $7.9 billion, up $1 billion from the previous year.

This is not it, Carnival Corporation & plc (NYSE:CCL) has already exceeded the current year with the cumulative advance booked positions for 2025, indicating that this record quarter was not an anomaly, but rather a pattern that we will see throughout the next year.

Aristotle Global Equity Strategy made the following comment about Carnival Corporation & plc (NYSE:CCL) in its Q4 2022 investor letter:

“We first purchased shares of Carnival Corporation & plc (NYSE:CCL), the world’s largest cruise line, during the second quarter of 2019. At the time, we believed the company was improving in quality, as the industry (and shipyards) had consolidated to a point where returns on capital could increase systematically over time. In addition, cruising is underpenetrated when compared to land-based alternatives. Despite the difficulties faced by the cruise industry during the pandemic, in our opinion, consumer appetite for cruising remains high, with cumulative advanced bookings at the upper end of historical ranges. As discussed below, we believe Carnival’s peer Norwegian Cruise Line is more optimally positioned for the coming years.”