We recently compiled a list of the 10 Most Volatile Stocks To Buy Right Now. In this article, we are going to take a look at where Carnival Corporation (NYSE:CCL) stands against the other volatile stocks.
Impact of Geopolitics on Investor Psyche and Investment Planning
In an interview on Bloomberg on October 2, Jimmy Chang, CIO at Rockefeller Global Family Office, shared his insights on how geopolitical events, such as the recent conflict between Iran and Israel, affect the investor psyche and investment planning. Chang emphasized the importance of separating noise from signals, noting that markets have been conditioned to react temporarily to such events, only to return to normal once the situation is controlled. He predicted that the market would likely move past the current conflict unless there is further escalation.
Chang also discussed the cumulative effect of various conflicts and geopolitical disruptions, including the Ukraine-Russia war and the changing of the guard in terms of presidential elections. He noted that the US election is a bigger catalyst in the near term, with a potential Trump victory being more disruptive to foreign policies, particularly regarding the war in Ukraine and support for Israel. Chang also highlighted the impact of the US market’s inward focus, with investors tending to dismiss overseas events, despite the potential for emerging markets to outperform.
Regarding the US election, Chang noted that his clients are interested in the outcome but have a long-term view, which has not altered their strategic allocation. However, tactically, they may play out different scenarios, such as a blue sweep, which could be viewed as negative for equities and positive for bonds, or a Trump victory, which could be more inflationary and positive for equities. Chang also discussed the potential for tailwinds, such as interest rates coming down and an economy doing better than expected, to outweigh any potential negatives from the election.
Chang expressed concerns about other risks, such as the port and Boeing strikes, which could have significant economic consequences if they drag on. He noted that these events could disrupt the market’s complacency about the interest rate-cutting cycle and potentially lead to inflation coming back. Despite these risks, Chang does not believe that the latest headlines are enough to derail the bull market, predicting a potential 5% pullback before the focus shifts to earnings season and the elections.
Overall, Chang’s comments provide insight into how investors navigate the complex geopolitical landscape and the potential impact of the US election on markets. While there are risks and uncertainties, investors are optimistic about the market’s ability to move past these events and continue expansion. With that in context, let’s take a look at the 10 most volatile stocks to buy right now.
Our Methodology
To compile our list of the 10 most volatile stocks to buy right now, we used the Finviz and Yahoo stock screeners to find the largest companies with a beta of more than 2. We then narrowed our choices to 10 stocks according to their hedge fund sentiment, which was taken from our database of 912 elite hedge funds as of Q2 of 2024. The list is sorted in ascending order of their hedge fund sentiment, as of the second quarter.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A luxurious cruise ship sailing the deep blue sea, sun glistening off its decks.
Carnival Corporation (NYSE:CCL)
Number of Hedge Fund Investors: 53
Beta: 2.70
Carnival Corporation (NYSE:CCL) is a global leader in leisure travel and cruise line operations and offers a wide range of cruise experiences across its brands. The company is dedicated to providing unique travel opportunities while focusing on sustainability initiatives to reduce its carbon footprint.
In Q3, Carnival Corporation’s (NYSE:CCL) revenue reached an all-time high of $7.9 billion. The company’s gross margin yields increased by 19% year-over-year, and net yields exceeded 2023 levels by 8.7%. Ticket prices and onboard spending were both up mid-single digits. Carnival Corporation’s (NYSE:CCL) adjusted EBITDA for the quarter was $2.82 billion, ahead of the consensus estimate of $2.67 billion. The company is poised to deliver record operating performance for the full year 2024, with adjusted EBITDA now expected to cross $6 billion and adjusted return on invested capital to be approximately 10.5%.
The company’s management has attributed the strong performance to strong demand, which has enabled them to increase their full-year yield guidance for the third time this year on favourable cost guidance. Booking volume for 2025 sailings has been strong at higher prices compared to the prior year, with the cumulative advanced booked position for the full year 2025 above the previous 2024 record.
Carnival Corporation’s (NYSE:CCL) bookings update indicates that nearly half of 2025 has been booked, with prices ahead of last year. The company’s brands are delivering robust booking momentum, with all brands ahead on price for 2025 sailings.
Carnival Corporation’s (NYSE:CCL) strong Q3 results and positive bookings update suggest that the company is well-positioned for continued growth and success in the cruise industry.
Overall CCL ranks 8th on our list of the most volatile stocks to buy. While we acknowledge the potential of CCL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CCL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published at Insider Monkey.
