In this article, we will look at the 12 Best Cruise Stocks to Buy According to Hedge Funds.
Overview of the Cruise Line Industry
The cruise industry is on the path to recovery after plunging during the Covid-19 pandemic. The Cruise Lines International Association (CLIA) reported that around 35.7 million passengers were anticipated to set sail in 2024, reflecting a 6% growth over 2019. JP Morgan reported that major cruise lines globally benefitted from a successful 2024 wave season, which falls between January and March. In fact, JP Morgan iterated that the annual number of cruise passengers is also expected to surpass pre-COVID levels from 2023 to 2027. Matt Boss, Head of Leisure and Retailing at J.P. Morgan, said the following about the optimistic cruise industry outlook:
“An important point underscoring our more constructive view of the cruise industry post-pandemic is market share gains from the larger $1.9T global vacation market and accelerated new-to-cruise customer acquisition. Demand remains robust, with not a single historical lead indicator in the business, notably booking curve and onboard spend, signaling any softening.”
In the past, baby boomers were at the center of the cruise industry’s core consumer base. This trend is, however, changing with the rise of young travelers. According to CLIA, 73% of millennials and Gen X travelers said that they would consider a cruise vacation. According to Grand View Research, the global cruise market had a size of $7.67 billion in 2022. It is anticipated to grow at a compound annual growth rate (CAGR) of 11.5% between 2023 and 2030, primarily due to the rising popularity of cruise vacations among younger demographics. The more affordable nature of these vacations is another significant factor attributed to this growth.
READ ALSO: 14 Best Farmland and Agriculture Stocks Buy Now and 10 Best Consumer Staples Stocks to Buy According to Analysts.
Are Analysts Bullish on the Cruise Industry?
On March 27, investment firm Exane BNP Paribas’ analysts expressed bullish sentiments on the cruise industry’s long-term outlook, stating that they anticipate cruise net yields to rise steadily in 2025 and 2026. The positive outlook was attributed to strong demand and new revenue drivers for the industry, such as private islands. Exclusive destinations such as private islands allow cruise lines the room to upsell guests on experiences at around $125 per day per person. This is a tailwind for cruise companies devising innovative ways to generate more value for cruisers and raise profits.
The firm also highlighted favorable demographics to support its bullish stance, along with the potential to gain market share in the global vacation market worth around $2 trillion. Exane BNP Paribas opined that cruise lines will likely benefit from rising demand and limited supply growth, which are expected to strengthen pricing power. In addition, digital innovations are helping cruise companies grow onboard spending and enhance customer experiences. According to the firm, these factors are likely to lead to more earnings growth for the industry.
With these trends in mind, let’s examine the 12 best cruise stocks to buy according to hedge funds.
An aerial view of a luxurious cruise ship, surrounded by the blue horizon.cruise
Our Methodology
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 20 cruise stocks and chose the top 12 most popular among hedge funds as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best Cruise Stocks to Buy According to Hedge Funds
12. World Kinect Corporation (NYSE:WKC)
Number of Hedge Fund Holders: 20
World Kinect Corporation (NYSE:WKC) provides fuel and related products and services for marine, aviation, and land transportation industries. Its operations are divided into Marine, Aviation, and Land segments. The Marine segment provides marketing products and services to international and local customers, including cruise lines. Its offerings include distribution and storage, oil and energy procurements, consulting, operations support, financial, and technology services.
The company’s fiscal Q4 2024 adjusted EPS reached $0.62, surpassing estimates by $0.12. World Kinect Corporation (NYSE:WKC) also reported $260 million in operating cash flow in 2024 and returned $139 million to shareholders through dividends and share repurchases, undergoing a 47% year-over-year growth. Over the last years, World Kinect Corporation (NYSE:WKC) has returned $312 million to shareholders through buybacks and dividends, which represents 72% of the free cash flow generated during the period.
Analysts are bullish on the stock, and its median price target of $24.79 implies an upside of 29.08% from current levels. World Kinect Corporation (NYSE:WKC) ranks 12th on our list of the 12 best cruise stocks to buy according to hedge funds.
11. Agilysys, Inc. (NASDAQ:AGYS)
Number of Hedge Fund Holders: 20
Agilysys, Inc. (NASDAQ:AGYS) provides hospitality software delivering cloud-native software-as-a-service (SaaS) and on-premises solutions for cruise lines and other sectors, including hotels, resorts, restaurants, stadiums, corporate food service management, and more. The company offers innovative software for various purposes, including inventory and procurement, document management, payment gateway, reservation and table management, and more. It also serves the gaming industry for cruise lines and other sectors.
On March 5, Needham analyst Mayank Tandon reiterated a Buy rating on Agilysys, Inc. (NASDAQ:AGYS) and set a price target of $100.00. The analyst told investors in a research note that the company has a positive outlook and the potential to overcome current headwinds in its point-of-sale sales and services revenue, which the firm regarded as temporary headwinds. The analyst expects growth to rebound to its usual trends within two to three quarters.
The firm also opined that Agilysys, Inc. (NASDAQ:AGYS) is well-positioned in the considerable $16 billion total addressable market, holding leading products in point-of-sale solutions and property management systems for the hospitality sector. It has also bolstered its sales leadership team, which is anticipated to support not only over a 25% sustained organic subscription revenue growth rate per annum but also expanding EBITDA margins. The company’s strong long-term prospects thus justify the firm’s Buy rating.
10. Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND)
Number of Hedge Fund Holders: 27
Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) is an experiential travel operator that offers immersive ship and land-based journeys through its six pioneering brands across all seven continents. Its operations are divided into Lindblad and Land Experiences. The Lindblad segment offers ship-based expeditions.
2024 was a record-breaking year for the company, with revenues growing by 13% to $645 million. Its Land segment reported a 29% revenue growth, while the Lindblad segment’s tour revenue rose 7%. This growth was attributed to improvement across all key metrics for the company, including accelerating yields in all quarters of 2024. Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) also reported a 28% rise in adjusted EBITDA for the year, with margins increasing 170 basis points to 14.4%.
Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) thus has strong operations. It is seeing bookings continually trending ahead of 2024 in 2025 and 2026 in both the Expedition and Land segments. Craig-Hallum analyst Alex Fuhrman maintained a Buy rating on Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) on March 11. The company ranks tenth on our list of the top cruise stocks to buy according to hedge funds. Parnassus Core Equity Fund stated the following regarding Linde plc (NASDAQ:LIN) in its Q4 2024 investor letter:
“Linde plc (NASDAQ:LIN) exceeded consensus expectations with its latest quarterly earnings, but lower-than-expected full-year guidance weighed on its stock. The global industrial gas provider could see a short-term impact from tightening economic conditions in its major markets.”
9. OneSpaWorld Holdings Limited (NASDAQ:OSW)
Number of Hedge Fund Holders: 29
OneSpaWorld Holdings Limited (NASDAQ:OSW) operates in around 195 cruise ships at approximately 50 destination resorts around the globe. Its services include self-service fitness facilities, salons, skin care, traditional body services, pain management, comprehensive body composition analyses, detoxifying programs, advanced medi-spa services, and more. The company’s brand portfolio encompasses ELEMIS, Kerastase, BOTOX Cosmetic, Dysport, Restylane, Perlane, Thermage, CoolSculpting, truSculpt 3D, and truSculpt iD, and others. OneSpaWorld Holdings Limited (NASDAQ:OSW) operates on several cruise lines, including Costa Cruises, Norwegian Cruise Line, Regent Seven Seas Cruises, Seabourn Cruise Line, and more.
Fiscal 2024 marked the second consecutive year of record performance by OneSpaWorld Holdings Limited (NASDAQ:OSW). The company’s positive operations are attributed to its strong financial position, innovation across its business portfolio, and global operations.
The company also reported strong fiscal Q4 2024 results, with total revenues growing 11% to $217.2 million compared to $194.8 million in fiscal Q4 2023. Total revenues for 2024 increased 13% to a record $895 million compared to $794 million in fiscal year 2023. Similarly, income from operations rose 37% to $17.2 million compared to $12.6 million in fiscal Q4 2023. OneSpaWorld Holdings Limited (NASDAQ:OSW) takes the ninth spot on our list of the best cruise stocks to invest in.
Ariel Small Cap Value Strategy was also bullish on OneSpaWorld Holdings Limited (NASDAQ:OSW) and said the following in its Q4 2024 investor letter:
“Provider of wellness services onboard cruise ships and destination resorts, OneSpaWorld Holdings Limited (NASDAQ:OSW), also traded higher as strong consumer trends drove another significant earnings beat and subsequent raise in full year guidance. Meanwhile, management strengthened the balance sheet by paying down and restructuring its expensive first lien term loan as well as ramped up capital returns to shareholders through buybacks and dividends.”
8. Sabre Corporation (NASDAQ:SABR)
Number of Hedge Fund Holders: 31
Sabre Corporation (NASDAQ:SABR) is a technology company that serves the travel industry, with operations in around 160 countries across the globe. Its operations include the Travel Solutions and Hospitality Solutions segments. The Travel Solutions segment operates as a global travel marketplace for various industries, including cruise lines. Sabre Vacations facilitates travel by offering everything in one place, including cruises, packaged tours, hotels, and rental cars.
The company reported record-high total revenue for its Hospitality Segment in 2024, driven by increased Central Reservation System (CRS) transactions. Revenue for the segment in fiscal Q4 2024 rose 8% year over year, reaching $81 million.
On April 1, Bernstein upgraded Sabre Corporation (NASDAQ:SABR) to Market Perform from Underperform with a price target of $3.50, down from $3.60. The analyst told investors in a research note that Reuters reported that Sabre Corporation (NASDAQ:SABR) is engaging Evercore to explore the sale of its hospitality suite SynXis. The firm also said a more positive stance on the company could come from a successful sale and improved commercial momentum in the remaining businesses. Sabre Corporation (NASDAQ:SABR) is the eighth-best cruise stock to buy, according to hedge funds.
7. Travel + Leisure Co. (NYSE:TNL)
Number of Hedge Fund Holders: 38
Travel + Leisure Co. (NYSE:TNL) offers vacation ownership, managed rental, and exchange services. The company owns exchange properties and vacation resorts, and its comprehensive cruise coverage enables users to get the best deals, the newest ships, and immersive itineraries on the high seas. Its offerings include Alaskan, All-Inclusive, Caribbean, Disney, European, Family, and River cruises.
Travel + Leisure Co. (NYSE:TNL) ended fiscal 2024 with strong momentum, which is continuing in 2025. It delivered $929 million of adjusted EBITDA for 2024, with its vacation ownership businesses fueling its 2024 success and growing 8%. The company also experienced growth returns to travel and membership with adjusted EBITDA. Its Vacation Club sales for the year fell within the expected range, and Tours grew 8%. The overall result was a 7% rise in enterprise-wide gross vacation ownership sales, reflecting the company’s positive operations.
In a report released on March 21, Stephen Grambling from Morgan Stanley maintained a Buy rating on Travel + Leisure Co. (NYSE:TNL) with a price target of $61.00. The company takes seventh place on our list of the top cruise stocks to invest in according to hedge funds.
6. Viking Holdings Ltd (NYSE:VIK)
Number of Hedge Fund Holders: 52
Viking Holdings Ltd (NYSE:VIK) offers destination-focused journeys on lakes, oceans, and rivers across the globe. Its offerings include travel experiences on all seven continents across the three cruise industry categories: ocean, river, and expedition cruising. Its fleet encompasses 58 longships, two expedition ships, and 11 ocean ships.
Viking Holdings Ltd (NYSE:VIK) has delivered notable gains so far in 2025 primarily due to the several top rankings it attained in the US News & World Report’s 2025 Best Cruise Line awards. The company also reported solid 2024 results, driven by a 6.3% growth in capacity and a healthy customer demand which was reflected in a net yield increase of 7.4%. Viking Holdings Ltd (NYSE:VIK) also reported a 14% year-over-year increase in its adjusted gross margin to more than $3.5 billion. Its strong results, disciplined approach to expenses, and focus on operational efficiency allowed the company to attain an adjusted EBITDA of $1.3 billion, up 23.7% from 2023. It also managed its balance sheet, ending 2024 with a 40.8% return on invested capital and net leverage of 2.4 times.
In a report released on March 21, Stephen Grambling from Morgan Stanley maintained a Buy rating on Viking Holdings Ltd (NYSE:VIK) with a price target of $49.00. The company is the sixth best cruise stock to buy according to hedge funds.
5. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders: 56
Carnival Corporation & plc (NYSE:CCL) is a global cruise and leisure travel company with a portfolio of cruise lines, including AIDA Cruises, Carnival Cruise Line, Princess Cruises, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), and more. Its segments are divided into NAA cruise operations, Europe cruise operations, Cruise Support, and Tour and Other.
The company recently announced an order for two additional new ships for AIDA Cruises, one of Germany’s most popular cruise lines. These multi-fuel-capable ships will be delivered in the first quarter of fiscal years 2030 and 2032, expanding its operations. Carnival Corporation & plc (NYSE:CCL) also has positive operations. In fiscal Q1 2025, it hit high-water marks for revenue, EBITDA, EBITDA per ALBD, operating income, and customer deposits. The company reported over $170 million in net income, surpassing guidance supported by strong demand throughout its portfolio. It also attained a robust 7.3% yield increase, exceeding its yield guidance on top of last year’s 17% yield improvement.
In addition, Carnival Corporation & plc’s (NYSE:CCL) EBITDA reached $1.2 billion for the quarter, approaching a 40% year-over-year increase. Both operating margins and EBITDA margins improved over 400 basis points year over year, surpassing 2019 levels. In a report released on March 31, David Katz from Jefferies reiterated a Buy rating on Carnival Corporation & plc (NYSE:CCL) with a price target of $31.00. The company ranks fifth on our list of the best cruise stocks to buy according to hedge funds.
4. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
Number of Hedge Fund Holders: 58
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a global cruise company that operates Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. It operates a fleet of 32 ships and over 66,500 berths, offering itineraries to more than 700 destinations worldwide. The company’s brands offer a range of amenities, activities, and features, including bars and lounges, multiple dining venues, retail shopping areas, spas, casinos, and numerous entertainment choices.
On April 7, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) announced the execution of long-term charter agreements for four vessels across three of its brands: two Norwegian Cruise Line vessels, Norwegian Sky, and Norwegian Sun. The vessels would be chartered to Cordelia Cruises, a premium India-based cruise operator, and are expected to begin in 2026 and 2027. Insignia from Oceania Cruises and Seven Seas Navigator from Regent Seven Seas Cruises will be chartered to Crescent Seas, which is a residential cruise line.
Jefferies analyst David Katz initiated coverage of Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) on March 31 with a Buy rating and a $25 price target. The firm expressed bullish sentiments for the cruise sector and cited “compelling demand” from the trade-down value-travel tailwind and constrained industry supply growth through 2030. The analyst told investors in a research note that Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) holds various positive traits as the fourth largest cruise line in the world and that there is “reasonable” capacity for the company with a relatively new CEO pushing cost efficiency. The company ranks fourth on our list of the top cruise stocks to buy now.
3. Royal Caribbean Cruises Ltd. (NYSE:RCL)
Number of Hedge Fund Holders: 58
Royal Caribbean Cruises Ltd. (NYSE:RCL) is a cruise company that owns and operates three global cruise brands: Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. The company also holds an interest in TUI Cruises GmbH, which operates the German brands TUI Cruises and Hapag-Lloyd Cruises. Royal Caribbean Cruises Ltd. (NYSE:RCL) offers a range of global itineraries across around 1,000 destinations on all seven continents.
The company reported $3.76 billion in revenue in fiscal Q4 2024, reflecting a 13% growth over the same period in 2023. It also nearly doubled its headline net income, standing at $533 million. On a non-GAAP per-share basis, Royal Caribbean Cruises Ltd. (NYSE:RCL) reported a 30% higher bottom-line profit at $1.63.
The company recently announced the launch of Celebrity River Cruises, a premium river cruise vacation brand with 10 ships in its initial fleet. The brand is expected to begin sailing in 2027, lending it a positive light. On March 17, JPMorgan added Royal Caribbean Cruises Ltd. (NYSE:RCL) to the firm’s Analyst Focus List while keeping an Overweight rating on the shares with a $298 price target. The analyst told investors in a research note that the firm’s “bottom-up build” points to a potential fiscal 2027 EPS power of $25, which surpasses management’s $20.39 “Perfecta Plan target.”
2. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 72
Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company that provides travel products and services to corporate and leisure travelers. It operates through the B2C, B2B, and Trivago segments. The company’s offerings include cruise vacations, vacation packages, all-inclusive resorts, coach and rail tours, and more.
Expedia Group, Inc. (NASDAQ:EXPE) outperformed analyst expectations with its fiscal Q4 2024 results, reporting an adjusted EPS of $2.39 and surpassing the forecast of $2.09 by 14.4%. Its revenue reached $3.184 billion, exceeding the expected $3.070 billion. The solid performance was attributed to increased travel demand. In addition, strong travel bookings and strategic initiatives in the company’s B2B segment also supported the growth.
Oppenheimer analyst Jed Kelly maintained a Buy rating on Expedia Group, Inc. (NASDAQ:EXPE) on March 17 and set a price target of $230.00. Investors are bullish on the stock, and its median price target of $131.02 implies an upside of 60.28% from current levels. The company ranks second on our list of the top cruise stocks to invest in now.
1. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 108
The Walt Disney Company (NYSE:DIS) is a diversified global entertainment company that operates in the Entertainment, Sports, and Experiences segments. Its Experiences segment includes Parks and Experiences and Consumer Products. The company operates the Disney Cruise Line, a popular line that offers family-oriented cruise experiences such as live shows, deck parties, themed dining, and character interactions.
The Walt Disney Company (NYSE:DIS) exceeded expectations in its fiscal Q1 2025 earnings, posting earnings per share of $1.76 compared to analysts’ estimates of $1.43. Revenue also surpassed the forecasted $24.55 billion.
Analysts’ profit targets for The Walt Disney Company (NYSE:DIS) have been growing for this fiscal year and the next. They estimate the company to earn $5.49 a share this fiscal year and $6.15 a share in fiscal 2026, reflecting confidence in its operations. According to management’s guidance, its Experiences segment is expected to be up 6% to 8%.
Overall, DIS ranks first among the 12 best cruise stocks to buy according to hedge funds. While we acknowledge the potential of cruise stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DIS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
