first_img “This Stock Could Be Like Buying Amazon in 1997” See all posts by Rupert Hargreaves I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Enter Your Email Addresscenter_img Over the past 12 months, the Carnival (LSE: CCL) share price has plunged a staggering 60% excluding dividends. This performance has taken the stock down to levels not seen since the financial crisis. In my opinion, this decline is warranted. Since March last year, the group has been unable to run most of its cruises. The result has been a staggering decline in sales. For the three months to the end of August 2019, Carnival’s revenues totalled $6.5bn. For the same period in 2020, the organisation brought in just $31m. That’s a 99.5% decline in revenues year-on-year. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…But as the world’s coronavirus vaccination rollout gets underway, the outlook for the Carnival share price is beginning to improve. As such, I’ve recently been taking a closer look at the business to see if it could be worth adding the stock to my portfolio. A return to growthThe most optimistic City analysts believe Carnival will be back up and running in 2022. In this optimistic scenario, analysts estimate the group’s revenues could hit $16.5bn for its 2022 financial year. Unfortunately, this recovery is by no means guaranteed. The optimistic projection assumes consumers will be happy to travel again and return as soon as restrictions are lifted. This may or may not happen. Even if it does, forecasts for profitability are pretty disappointing. Carnival has had to borrow billions of dollars over the past 12 months to keep the lights on. The interest costs on these debts are expected to eat up the majority of the group’s income going forward. These are the primary challenges the business faces, but there are also opportunities. Over the past 12 months, UK consumers have saved a tremendous amount of money by not going on holiday. They may rush to spend these funds when the pandemic recedes. The same is true of consumers elsewhere. This may mean even the most optimistic analyst projections are currently too conservative. Further, some of Carnival’s peers have not been so lucky and have collapsed. This could play into the group’s hands over the next few years, as it snaps new business from former competitors. The outlook for the Carnival share price Carnival faces plenty of challenges in the years ahead. The company also has plenty of opportunities. This makes it challenging for me to establish if the stock is worth buying at current levels. What really concerns me is the group’s level of debt. At the end of its last fiscal quarter, the company had net debts of $17.5bn, up from just $9bn at the end of fiscal 2018. This is incredibly concerning for a business that has no revenues, and I’m not particularly eager to buy stocks with a massive amount of debt. As such, I am going to avoid the Carnival share price until there’s more clarity on its future.  I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Simply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Shares The Carnival share price plunges 60%! Should I buy the stock? Rupert Hargreaves | Saturday, 13th February, 2021 | More on: CCL last_img