Tag: Carnival

Shoe Carnival: An Overlooked, Cheap Retail Stock (NASDAQ:SCVL)

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The crisis that beset the world earlier this year created some valuation dislocations in many sectors of the stock market. One was certainly retail, as stocks in the group performed wildly differently throughout the initial stages of panic, and subsequently. One stock that was sold far too heavily – and remains unappreciated to this day, in my view – is Shoe Carnival (SCVL).

The stock made a new 2020 high about a month ago but was rudely rebuffed from that level, and trades today about six dollars lower. That’s a very sizable pullback and in my view, Shoe Carnival is back into the value category as of this point.

The apparel retailers index has underperformed this year, but has turned higher in recent weeks. Shoe Carnival has outperformed its benchmark for the year, so if the group does continue to run higher against the S&P 500, Shoe Carnival

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Carnival Sees Q3 Loss of Around $3 Billion; Bookings Improve

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Carnival Corp.  (CCL) – Get Report said Tuesday that its expects a third quarter loss of around $3 billion and that it could sell around $1 billion in common shares as part of a capital raising plan.

Carnival said in a Securities and Exchange Commission filing Tuesday that its loss for the three months ending in August is expected to be $2.9 billion on a U.S. GAAP basis, a figure that includes non-cash charges of around $900 million. Its third quarter cash burn rate was pegged at $770 million, the company said, a figure it expects to slow to $530 million over the three months ending in November. 

However, it also said that second half bookings for its cruise ships were ahead of their historic averages, as customers return to the travel sector following months of coronvirus lockdowns in key markets around the world.

Carnival is expected to

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Should I buy Carnival or IAG shares?

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If you are looking for cheap UK shares to buy today, I think it could be worth taking a closer look at Carnival (LSE: CCL) and IAG (LSE: IAG) shares. 

Shares in cruise operator Carnival and airline group IAG have both fallen substantially this year. After these declines, the two stocks look cheap relative to history. 

However, I think the outlooks for these two businesses are substantially different. As such, one company looks to me to be a much better long-term investment. 

Today, I’m going to take a look at these two businesses, to try and establish which might be the best investment for the long run. 

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Despite the company’s troubles, IAG shares seem to me to be the better buy. Carnival looks cheap, but the company has some serious problems. 

At the beginning of the coronavirus crisis, the company made headlines when its Diamond Princess cruise

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