5 Best Cruise Stocks To Buy Now

In this article, we discuss 5 best cruise stocks to buy now. If you want to read our discussion on the cruise and recreational industry, head directly to 11 Best Cruise Stocks To Buy Now. 

5. Carnival Corporation & plc (NYSE:CCL)

Number of Hedge Fund Holders: 41

Carnival Corporation & plc (NYSE:CCL) is one of the best cruise stocks to buy. Carnival Corporation & plc (NYSE:CCL) provides leisure travel services globally, with operations in North America, Australia, Europe, and Asia. The company operates through four segments – NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other. 

On February 13, Carnival Corporation & plc (NYSE:CCL) ordered its first new ship in 5 years, the 10th in the Excel-class series, to be built by German shipbuilder Meyer Werft. The 180,000-ton ship, accommodating 6,400 passengers, will run on liquefied natural gas. Carnival plans to continue its measured capacity growth strategy with one to two ships per year from 2027 onwards, addressing the needs of specific cruise lines. The Excel-class ship is set to commence service in 2027.

According to Insider Monkey’s fourth quarter database, 41 hedge funds were long Carnival Corporation & plc (NYSE:CCL), up from 33 funds in the last quarter. John Overdeck and David Siegel’s Two Sigma Advisors is the biggest stakeholder of the company, with 16.10 million shares worth $298.5 million. 

Aristotle Global Equity Strategy made the following comment about Carnival Corporation & plc (NYSE:CCL) in its Q4 2022 investor letter:

“We first purchased shares of Carnival Corporation & plc (NYSE:CCL), the world’s largest cruise line, during the second quarter of 2019. At the time, we believed the company was improving in quality, as the industry (and shipyards) had consolidated to a point where returns on capital could increase systematically over time. In addition, cruising is underpenetrated when compared to land-based alternatives. Despite the difficulties faced by the cruise industry during the pandemic, in our opinion, consumer appetite for cruising remains high, with cumulative advanced bookings at the upper end of historical ranges. As discussed below, we believe Carnival’s peer Norwegian Cruise Line is more optimally positioned for the coming years.”

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

Number of Hedge Fund Holders: 54

Royal Caribbean Cruises Ltd. (NYSE:RCL) ranks 5th on our list of the best cruises to watch. It is a global cruise company that operates under the brands Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. On February 1, Royal Caribbean Cruises Ltd. (NYSE:RCL) provided optimistic guidance for 2024, driven by strong demand and record bookings. The cruise operator anticipates an adjusted profit of $9.50-$9.70 per share for 2024, reflecting a 40% year-over-year increase and surpassing the Street consensus of $9.18. In 2023, Royal Caribbean Cruises Ltd. (NYSE:RCL) earned a profit of $6.77 per share. Additionally, for Q1 2024, the company forecasts adjusted EPS between $1.10 to $1.20 per share, exceeding the Street’s consensus estimate of $0.84 per share.

According to Insider Monkey’s fourth quarter database, 54 hedge funds were bullish on Royal Caribbean Cruises Ltd. (NYSE:RCL), up from 41 funds in the last quarter. D E Shaw is the biggest stakeholder of the company, with 4.8 million shares worth $632.3 million. 

Ariel Fund made the following comment about Royal Caribbean Cruises Ltd. (NYSE:RCL) in its Q2 2023 investor letter:

“Several stocks in the portfolio had strong returns over the period. Global cruise vacation company, Royal Caribbean Cruises Ltd. (NYSE:RCL), was one of the top 3 performers in the S&P 500 during the quarter. Shares surged following a significant top- and bottom-line earnings beat, as stronger than anticipated consumer demand is driving a record WAVE season. Forward booking trends are also ahead of historical ranges at record pricing. These factors combined with further improvement in onboard spend and solid cost containment led management to increase RCL’s full-year 2023 guidance. We believe the revised revenue and earnings outlook lays the foundation for RCL to exceed its’ three-year strategic imperative, the Trifecta Program.”

3. Hilton Worldwide Holdings Inc. (NYSE:HLT)

Number of Hedge Fund Holders: 57

Hilton Worldwide Holdings Inc. (NYSE:HLT) is a hospitality company involved in managing, franchising, owning, and leasing hotels and resorts. Hilton Grand Vacations Members have access to a diverse range of cruise itineraries from major cruise lines and are assured of the best-price guarantee. Hilton Worldwide Holdings Inc. (NYSE:HLT) is one of the best cruise stocks to invest in. On February 7, the company declared a quarterly dividend of $0.15 per share, in line with previous. The dividend is payable on March 28, to shareholders on record as of February 23. 

According to Insider Monkey’s fourth quarter database, 57 hedge funds were bullish on Hilton Worldwide Holdings Inc. (NYSE:HLT), compared to 53 funds in the earlier quarter. Bill Ackman’s Pershing Square is the biggest stakeholder of the company, with 9.18 million shares worth $1.67 billion. 

Pershing Square Holdings made the following comment about Hilton Worldwide Holdings Inc. (NYSE:HLT) in its first half 2023 investor letter:

Hilton Worldwide Holdings Inc. (NYSE:HLT) is a high-quality, asset-light, high-margin business with significant long-term growth potential. In the first half of 2023, Hilton generated robust revenue growth. In the second quarter, HLT’s revenue per room (“RevPAR”), the industry metric for same-store sales, increased 12% as compared to 2022. Recent quarters continue to benefit from stable demand and rising rates driving leisure growth to new highs, while business transient continues to sequentially accelerate, with group sales just now approaching pre-COVID levels.

While net managed and franchised units grew 4% year-over-year during the most recent quarter, slightly below the full year target which Hilton adjusted to approximately 5% per annum, net unit growth (“NUG”) is poised to accelerate in the back half of the year. While management anticipates NUG of approximately 5% this year, they anticipate it will accelerate to 5-6% in 2024 and return to its historical 6-7% range over the next several years. Net unit growth is poised to accelerate in 2024 as Hilton begins to roll out its new premium economy and long-term-stay concepts (Spark and H3, respectively) and as international development activity accelerates. Hilton signed more than 36,000 rooms in the quarter, the largest quarterly signing in the company’s history. The company’s pipeline includes 441,000 rooms with approximately 50% under construction…” (Click here to read the full text)

2. Booking Holdings Inc. (NASDAQ:BKNG)

Number of Hedge Fund Holders: 83

Booking Holdings Inc. (NASDAQ:BKNG) offers a range of online and traditional travel and restaurant reservation services globally. The company operates platforms such as Booking.com, Priceline, Agoda, KAYAK, OpenTable, and Rentalcars.com, facilitating accommodation, flight, activity, rental car, vacation package, and cruise reservations. Booking Holdings Inc. (NASDAQ:BKNG) is one of the best cruise stocks to monitor. On February 22, the company initiated a $8.75 per share quarterly dividend. The dividend is distributable on March 28, to shareholders on record as of March 8. 

According to Insider Monkey’s fourth quarter database, 83 hedge funds held stakes in Booking Holdings Inc. (NASDAQ:BKNG), compared to 81 funds in the last quarter. Ken Fisher’s Fisher Asset Management is a significant position holder in the company, with 376,734 shares worth $1.3 billion. 

Ensemble Capital Management stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its fourth quarter 2023 investor letter:

“Booking Holdings Inc. (NASDAQ:BKNG) (7.60% weight in the Fund): Earlier this year, Booking Holdings rolled out an AI trip planner. Traditionally Booking helps users find the right hotel by offering a search engine to define which city you want to stay in and apply various filters to narrow down the hotel options. With Booking’s AI Trip Planner, a user can use natural language such as “plan a road trip on Route 66, starting in Chicago and ending to Los Angeles.” The Trip Planner then engages with the user like a travel agent, suggesting which cities to stay in each night and various sights to see along the way. Once the trip is planned out, the user can use natural language to generate hotel options, such as by writing “My budget is $200 to $300 a night. It will be my husband and I traveling together.”

Booking’s experiments in AI demonstrate the value of proprietary data sets. While general AI systems such as ChatGPT are designed to answer questions about anything, focused AI systems that leverage a company’s unique data can be far more powerful when applied to specific use cases. With Booking’s AI Trip Planner, the system is unable to answer questions unrelated to making travel reservations. But on the other hand, it is far more likely to understand what the user wants since it already knows that the entire conversation will be about travel. Importantly, Booking’s AI Trip planner has access to the company’s enormous dataset that includes hotel ratings, popular hotels, and all sorts of detailed information about each hotel.”

1. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 89

The Walt Disney Company (NYSE:DIS) ranks 1st on our list of the best cruise stocks. Disney Cruise Line, operated by The Walt Disney Company (NYSE:DIS), is a popular cruise line that offers family-oriented cruise experiences. They have a fleet of distinctive ships and sail to multiple destinations, providing entertainment, themed activities, and character interactions for guests of all ages. On February 8, The Walt Disney Company (NYSE:DIS) declared a $0.45 per share semi-annual dividend, a 50% increase from its prior dividend of $0.30 paid in January. The dividend is payable on July 25, to shareholders on record as of July 8. 

According to Insider Monkey’s fourth quarter database, 89 hedge funds were bullish on The Walt Disney Company (NYSE:DIS), same as the prior quarter. Nelson Peltz’s Trian Partners is the leading stakeholder of the company, with 32.3 million shares valued at $3 billion. 

Madison Sustainable Equity Fund made the following comment about The Walt Disney Company (NYSE:DIS) in its Q3 2023 investor letter:

“During the quarter, we sold our positions in Bristol-Myers Squibb and The Walt Disney Company (NYSE:DIS).  The Walt Disney Company is facing a difficult and uncertain transition in its core media business assets including the ESPN business and other linear media assets. These media assets are cash generative but face secular decline as consumers are cutting their expensive cable subscriptions and moving to alternative streaming options. This has resulted in a decline in operating profits for the media division. The media business has long-term fixed costs related to its sports broadcasting agreement with multiple sports leagues which will further pressure profits during this transition.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out Jim Cramer’s 10 New Stock Picks for March 2024 and 25 Companies with the Best Benefits and Perks.