While volatility is on the rise in broader markets, investors wonder if now could be a good time to buy Royal Caribbean (NYSE:RCL). After all, like many other battered travel and cruise names, RCL stock is down over 50% year-to-date.
However, that metric tells only half the story. Since the lows hit in March, the shares have tripled in value, in part due to hopes for a V-shaped economic recovery and the development of a vaccine.
Abhinav Sharma and Juan Luis Nicolau of Pamplin College of Business at Virginia Tech recently conducted a study on the effects of the pandemic on the travel industry. They conclude that while hotels, airlines, cruise lines and car rental agencies have