Pandemic. Why Concerns Are Overblown.
.....> And some recent additions to the group are household names like Marriott International and Carnival.....>
.....> While the S&P 500 has already surpassed its pre-pandemic record high, many zombie stocks are still struggling. Carnival is still 66% below its 2020 high, and its average analyst price target is $16, more than 5% below its current level.....>
.....> However, some of the companies turned into zombies by the pandemic—particularly travel and restaurant stocks—should come back to life as a vaccine helps the world move past Covid-19.
Earnings are expected to see a sharp rebound in the next one to two years, which would allow some current zombie companies to be able to cover their interest expense and become healthy again.....>
The recent surge in so-called zombie companies—which has included household names such as Marriott International and Carnival—seems haunting, but concerns might be overblown. |