The U.S. and Canada are among the countries to caution their citizens against traveling on cruises. Does this mean the death of cruise stocks is imminent? Not just yet, according to one expert.
'All Hope Is Not Lost'
U.S. President Donald Trump said his administration will help the cruise and airline industries, which suggests "all hope is not lost," Ascent Wealth Partners Managing Director Todd Gordon said on CNBC.
Royal Carribean Holding On To Key Support Level
From a technical perspective, Royal Caribbean's stock is holding on to a key area of support near $45 per share, which coincides with a series of old highs, Gordon said.
Carnival's stock, on the other hand, isn't "looking as good" as it trades near a key support level of $17 and "really needs to stay above there," he said.
Overall, the cruise industry could see some support from the $120 billion baby boomers are spending on travel, Gordon said.
If the coronavirus-related health issues subside, Gordon said he "might reenter the position in Royal Caribbean."
The entire tourism industry could see continued headwinds, but airlines and hotels will have an easier path to recovery, Chantico Global CEO Gina Sanchez also said on "Trading Nation."
People are more likely to "get back on planes" than they will be on cruises, which will have a "hard time" attracting back guests, she said.