10 Best Travel Stocks To Buy Right Now

5. Royal Caribbean Cruises Ltd. (NYSE:RCL)

Number of Hedge Fund Holders: 52

Royal Caribbean Cruises Ltd. (NYSE:RCL) is a major player in the travel industry, it operates three well-known cruise brands including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. Its vast fleet of 68 ships travels to approximately 1,000 destinations across all seven continents, providing diverse itineraries that can last from a few days to several weeks. The company also has a stake in TUI Cruises and Hapag-Lloyd Cruises, which cater to the German market.

Royal Caribbean Cruises Ltd. (NYSE:RCL) had a remarkable year driven by increased travel demand internationally. Its load factor, which indicates how well the ships are filled, reached an impressive 111% during the fiscal third quarter of 2024. This resulted in the company’s revenue growing 17.45% year-over-year to reach $4.9 billion, with a net income of $1.1 billion. More impressively, management was able to improve its gross margin yields by 13.4%, while Net Yields rose by 7.9% in constant currency, driven by higher pricing and onboard spending.

Management expects elevated demand patterns to persist into 2025 and raised its full-year 2024 Adjusted Earnings Per Share (EPS) guidance to a range of $11.57 to $11.62. Moreover, Royal Caribbean Cruises Ltd. (NYSE:RCL) continues to innovate its fleet, it recently launched the Utopia of the Seas, which has received positive market feedback. Additionally, a fourth Icon-class ship is planned for delivery in 2027. It is the 5th best travel stock to buy right now.

Ariel Fund stated the following regarding Royal Caribbean Cruises Ltd. (NYSE:RCL) in its Q2 2024 investor letter:

“Global cruise vacation company, Royal Caribbean Cruises Ltd. (NYSE:RCL), advanced on another quarterly earnings beat and subsequent raise in full-year guidance. Stronger than anticipated consumer demand, healthy onboard spend, robust pricing and solid cost containment lifted recent results. Additionally, RCL is benefitting from several new megaships, more island destinations and re-entry into the China market. The resiliency of the core cruise consumer, in combination with management’s superior operational expertise and revised earnings outlook, lays the foundation for RCL to exceed its three-year strategic imperative, the Trifecta Program, a year earlier than expected.”