Cruise Stock: CDC Warning Provides Smooth Navigation for RCL, CCL, NCLH Shares

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Today, cruise stocks are gaining positive momentum as the sector is recovering sharply. Royal Caribbean (NYSE:RCL), Carnival (NYSE:CCL) in Norwegian (NYSE:NCLH) each reported a profit of between 2.4% and 5% in early afternoon trading.

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2021 was a bit difficult for investors in cruise stocks. Many investors may have fallen ill for these stocks, which weakened and ran in an impressive way. Hoping that the cruises will finally open, a series of regulatory barriers followed with a return to normalcy in 2022.

Today, investors’ wishes seem to be closer to being realized. Let’s delve into the key catalyst observed today by cruise stock investors.

Cruise stocks rise higher as CDC guidelines become optional

According to the allegations recent reports, it seems that investors in cruise stocks finally have something to look forward to. The Centers for Disease Control (CDC) framework for conditional navigation will expire on Saturday. This order required cruisers to introduce certain CDC protocols to ensure passenger safety and expedite return for cruisers. This sector, which has been hit by the pandemic, has welcomed a return to sailing. However, these restrictions have been strenuous, as they have limited the number of passengers per vessel and increased the cost, such as staff, of meeting these requirements.

The course of this order means that cruisers can actually choose whether to follow CDC guidelines voluntarily or not. Accordingly, it remains to be seen what the final effect will be for cruise visitors. However, the fact that this CDC order has become a CDC guideline is now generally perceived by investors as bullish.

Some analysts have already come forward and named 2022 “Year of the Cruise.” This removal of the prescribed restrictions certainly points in the right direction. Thus, investors hoping for a return to profitability in this sector now have a realistic path to green. This is good for cruise stocks and the sector as a whole.

At the time of publication, Chris MacDonald did not hold (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are the subject of InvestorPlace.com Guidelines for publication.

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