Cruise ship operator Carnival Corp (NYSE:CCL) earlier represented one of the intriguing bullish plays in the broader consumer discretionary market, with CCL stock rising 71% between the beginning of May and the end of August. Since then, however, the security has incurred a noticeable erosion of value. Still, the downturn may present a potential upside prospect for data-driven speculators.
Much of the latest volatility can be tied to competitive pressures sending CCL stock down in sympathy. Last week, rival Norwegian Cruise Line Holdings (NYSE:NCLH) suffered a downturn after its third-quarter report showed significant sales weakness. It wasn't necessarily surprising given that consumer sentiment has been dropping due to top-level concerns, particularly inflation, job security and overall economic stability. Still, the actual disclosure required a capital reevaluation.
