5 Most Volatile Stocks to Buy in S&P 500

4. Carnival Corporation Ltd. (NYSE:CCL)

Beta Value (5Y Monthly): 2.33

Carnival Corporation Ltd. (NYSE:CCL) provides unparalleled cruise vacations through a world-class portfolio of cruise lines and a global fleet of more than 90 ships visiting over 800 ports and destinations around the world.

On June 3, Freedom Broker initiated coverage of Carnival Corporation Ltd. (NYSE:CCL) with a ‘Buy’ rating and a price target of $35, indicating an upside of over 27% from the current levels.

The analyst firm believes that the cruise industry is going through a “rare” favorable combination of factors, including record demand, disciplined supply, and attractive valuations. While net yields across the sector remained above pre-pandemic levels last year, the cruise industry trades at a discount compared to its lodging peers.

According to Freedom Broker, this valuation gap is largely attributed to the current geopolitical risk, the soaring oil prices amid the Middle East tensions, and elevated leverage. However, the analyst does view these risks as significant enough to undermine its investment thesis.

On the other hand, Truist analyst C. Patrick Scholes turned slightly bearish on Carnival Corporation Ltd. (NYSE:CCL) on May 22 and lowered the firm’s price objective on the stock (read more details here).