After months of uncertainty and volatility, it's time for investors to hop back on board with cruise line stocks, according to Barclays.
| FRI, SEP 25, 2020 | | | DOW | NAME | LAST | CHG | %CHG | AAPL | 112.28 | +4.06 | +3.75% | MSFT | 207.82 | +4.63 | +2.28% | BA | 156.03 | +9.98 | +6.83% | |
| S&P 500 | NAME | LAST | CHG | %CHG | AAPL | 112.28 | +4.06 | +3.75% | GE | 6.11 | +0.06 | +0.99% | CCL | 15.07 | +1.33 | +9.68% | | | NASDAQ | NAME | LAST | CHG | %CHG | AAPL | 112.28 | +4.06 | +3.75% | TSLA | 407.34 | +19.55 | +5.04% | AMD | 78.06 | +2.23 | +2.95% | | | | After months of uncertainty and volatility, it's time for investors to hop back on board with cruise line stocks, according to Barclays. Barclays analyst Felicia Hendrix upgraded Carnival, Norwegian Cruise Line and Royal Caribbean to overweight from equal weight. The analyst said the stocks' "risk/reward is the most attractive in our coverage universe." She added that "investors who have previously written off cruise stocks should begin to revisit their models" and that the industry is approaching an "inflection point" as the Centers for Disease Control and Prevention could lift a no-sail order next week. The order was implemented to curb the spread of the coronavirus. The upgrades sent Norwegian Cruise Line up more than 13%, the stock's biggest one-day gain since July 15, when it surged 20.7%. Carnival had its best day since Aug. 24, jumping 9.7%. Royal Caribbean rose 7.7% for its best one-day performance since Aug. 10. To be sure, these stocks are still down sharply year to date. The cruise industry could also fall under more pressure if another coronavirus resurgence sparks stricter social distancing measures and further curbs traveling. Don't miss CNBC and Institutional Investor's Delivering Alpha conference on September 30, featuring Treasury Secretary Steven Mnuchin, Senator Elizabeth Warren, Alibaba's Joseph Tsai, Vista Equity Partners' Robert Smith, J.P. Morgan's Mary Callahan Erdoes, Inclusive Capital's Jeff Ubben and more.
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