12 Best New Stocks to Buy According to Hedge Funds

3) Viking Holdings Ltd (NYSE:VIK)

Number of Hedge Fund Holders: 49

Viking Holdings Ltd (NYSE:VIK), which started trading on the NYSE on 1^st May 2024, is engaged in passenger shipping and other forms of passenger transport in North America, the United Kingdom, and internationally.

One of the significant factors supporting Viking Holdings Ltd (NYSE:VIK)’s growth trajectory is its direct marketing strategy. The company’s ability to source its passengers via direct channels reduces customer acquisition costs and also allows it to have better control over the customer experience and brand messaging. Viking Holdings Ltd (NYSE:VIK)’s fleet is the youngest among publicly traded cruise lines, resulting in consistent yields and a longer FCF profile. This modern fleet remains a critical factor in attracting and retaining customers in the luxury segment, in which expectations for quality and amenities are high.

Viking Holdings Ltd (NYSE:VIK) can maintain a closer relationship with its customers, leading to higher brand loyalty and repeat bookings, courtesy of its direct marketing strategy.  This direct connection results in more personalized marketing efforts and a clearer understanding of customer preferences.

Because of lower customer acquisition costs, Viking Holdings Ltd (NYSE:VIK) experiences higher profit margins. This allows the company to reinvest in product quality and customer experience. Furthermore, the direct approach provides the company with valuable first-party data, allowing more effective targeting and product development.