In this article we discuss the 5 best cruise stocks to buy now. If you want to read our detailed analysis of these companies, go directly to the 10 Best Cruise Stocks to Buy Now.
5. Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
Number of Hedge Fund Holders: 34
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) is a cruise company operating in the US and internationally. The company operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It ranks 5th on our list of the best cruise stocks to buy now.
In June, JP Morgan hiked up its price target for Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) from $35 to $38, while retaining its Overweight rating on the stock. This May, Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) announced that it would be resuming cruises to Alaska in August, while on June 7th, it also unveiled its US voyage resumption plans by announcing that 23 out of 28 ships across three brands would begin their voyages in July, phasing through early 2022 to resume voyages from New York, Los Angeles, Port Canaveral, and Miami. In the first quarter of 2021, Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) had EPS of -$2.03, beating estimates by $0.03. Its revenue was $3.1 million for the quarter. The stock has gained 25.96% in the past 6 months and 30.47% year to date.
By the end of the first quarter of 2021, 34 hedge funds out of the 866 tracked by Insider Monkey held stakes in Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH). Their total stake value was roughly $576 million. This is compared to 40 hedge fund holders with a total stake value of roughly $334 million in the previous quarter.
Miller Value Partners, an investment management firm, mentioned Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) in their fourth-quarter 2020 investor letter. Here’s what they said:
“In the squarely value camp, we bought Norwegian Cruise Lines in the fourth quarter. The sector has obviously been one of the hardest hit by COVID with business shut down. It should be one of the biggest beneficiaries of a normalization due to vaccines and infections helping us reach herd immunity at some point. As we got clarity around vaccine efficiency and potential timelines for disbursement, it enabled us to analyze the ability of cruise lines to make it through and what the potential balance sheet and earnings power might look like on the other side. We think Norwegian is worth somewhere in the $40s with a good ability to withstand the crisis. We think the recovery in travel is more likely to beat current recovery expectations than it is to fall short, setting up a nice risk-reward.”
4. Royal Caribbean Group (NYSE: RCL)
Number of Hedge Fund Holders: 42
Royal Caribbean Group (NYSE: RCL) is a global cruise company. It operates under the Royal Caribbean International, Celebrity Cruises, Azamara, and Silversea Cruises brands. The company ranks 4th on our list of the best cruise stocks to buy now.
On June 4th, Royal Caribbean Group (NYSE: RCL) announced that it would be restarting its US cruises in July. The company also reportedly raised $650 million to fund 7.25% senior secured notes due in 2025. In the first quarter of 2021, Royal Caribbean Group (NYSE: RCL) had an EPS of -$4.44, beating estimates by $0.17. Its revenue for the quarter came in at $42.01 million, beating estimates by $1.53 million. The stock gained 22.96% in the past 6 months and 22.86% year to date as well.
By the end of the first quarter of 2021, 42 hedge funds out of the 866 tracked by Insider Monkey held stakes in Royal Caribbean Group (NYSE: RCL). Their total stake value was roughly $594 million. This is compared to 37 hedge fund holders with a total stake value of roughly $554 million in the previous quarter.
3. Carnival Corporation & plc (NYSE: CCL)
Number of Hedge Fund Holders: 44
Carnival Corporation & plc (NYSE: CCL) is a leisure travel company. Its ships go through about 700 ports under the brands of Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia), Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises (UK), and Cunard. The stock ranks 3rd on our list of the best cruise stocks to buy now.
On June 23rd, Carnival Corporation & plc (NYSE: CCL) announced plans to restart its cruises in the US, Caribbean, and Europe. The company also said on June 24th that its cash burn rate had improved more than expected because of the timing of proceeds from ship sales. The company stated that it ended the quarter with $9.3 billion, which it claims is enough funds to restart its cruise operations. This June, Stifel reiterated its Buy rating and $37 price target on Carnival Corporation & plc (NYSE: CCL).
In the first quarter of 2021, Carnival Corporation & plc (NYSE: CCL) brought in EPS of -$1.79, alongside revenue valued at $26 million. The stock has also gained 32.94% in the past 6 months and 35.94% year to date.
By the end of the first quarter of 2021, 44 hedge funds out of the 866 tracked by Insider Monkey held stakes in Carnival Corporation & plc (NYSE: CCL). Their total stake value was roughly $593 million. This is compared to 47 hedge fund holders with a total stake value of roughly $1.19 billion in the previous quarter.
ClearBridge Investments, an investment management firm, mentioned Carnival Corporation & plc (NYSE: CCL) in their first-quarter 2021 investor letter. Here’s what they said:
“Several of our better performers in the first quarter were purchased while their business models were under stress from COVID restrictions or the macro environment the pandemic created. What gave us confidence in purchasing Carnival was the actions the company took to extend out their balance sheets until travel resumed. Both should benefit as a broader vaccination rollout prompts cruise lines to resume operations and consumers to start traveling again and are positioned to deliver better margins and gain pricing power as the economy normalizes due to the cost controls implemented during the downturn.”
2. Expedia Group, Inc. (NASDAQ: EXPE)
Number of Hedge Fund Holders: 86
Expedia Group, Inc. (NASDAQ: EXPE) is an online travel company operating in the US and internationally. It has three segments, namely the Retail, B2B, and trivago segments. The company’s brand portfolio includes Brand Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, CheapTickets travel websites, ebookers, Trivago, and a range of other brands. The company ranks 2nd on our list of the best cruise stocks to buy now.
On June 10th, Expedia Group, Inc. (NASDAQ: EXPE) was among the stocks referred to as “attractive momentum” picks by Wells Fargo. In the first quarter of 2021, Expedia Group, Inc. (NASDAQ: EXPE) had EPS of -$2.02, beating estimates by $0.26. Its revenue for the quarter came in at $1.25 billion, beating estimates by $134.56 million. The company has a gross profit margin of 67.85%. The stock has gained 33.46% in the past 6 months and 28.98% year to date.
By the end of the first quarter of 2021, 86 hedge funds out of the 866 tracked by Insider Monkey held stakes in Expedia Group, Inc. (NASDAQ: EXPE). Their total stake value was roughly $6.15 billion. This is compared to 76 hedge fund holders with a total stake value of roughly $6.59 billion in the previous quarter.
ClearBridge Investments, an investment management firm, mentioned Expedia Group, Inc. (NASDAQ: EXPE) in their first-quarter 2021 investor letter. Here’s what they said:
“Several of our better performers in the first quarter were purchased while their business models were under stress from COVID restrictions or the macro environment the pandemic created. What gave us confidence in purchasing Expedia were the actions the company took to extend out their balance sheets until travel resumed. It should benefit as a broader vaccination rollout prompts cruise lines to resume operations and consumers to start traveling again and are positioned to deliver better margins and gain pricing power as the economy normalizes due to the cost controls implemented during the downturn.”
1. The Walt Disney Company (NYSE: DIS)
Number of Hedge Fund Holders: 134
The Walt Disney Company (NYSE: DIS) is a global entertainment company that has also set up its own cruise line operation as a subsidiary. The company is headquartered in Florida and ranks 1st on our list of the best cruise stocks to buy now.
Recently, Cathie Wood’s ARK Investment reportedly paved a position for itself in The Walt Disney Company (NYSE: DIS) by buying over 108,000 shares in the company. This June, The Walt Disney Company (NYSE: DIS) has announced Halloween and Christmas cruises for 2022 and has also announced new test cruises to begin this year. For the fiscal first quarter of 2021, The Walt Disney Company (NYSE: DIS) had EPS of $0.32, beating estimates by $0.66, and its revenue came in at $16.25 billion, beating estimates by $370.74 million. It has a gross profit margin of 30.65%, and the stock gained 2.14% in the past 6 months and 58.33% in the past year.
By the end of the first quarter of 2021, 134 hedge funds out of the 866 tracked by Insider Monkey held stakes in The Walt Disney Company (NYSE: DIS). Their total stake value was roughly $12.5 billion. This is compared to 144 hedge fund holders in the previous quarter.
You can also take a peek at 15 Biggest Shipping Companies In The World and 15 Biggest Travel Companies.
