In this article, we will be looking at the 5 best cruise stocks to buy right now. To read our analysis of the cruise industry and its growth prospects, go directly to 10 Best Cruise Stocks To Buy Right Now.
5. Carnival Corporation & plc (NYSE:CCL)
Number of Hedge Fund Holders: 32
Carnival Corporation & plc (NYSE:CCL) is a British-American cruise operator with 10 brands under its portfolio and a fleet of over 100 ships. The Miami, Florida-based company has the distinction of being the biggest cruise line in the world in terms of fleet and passenger volume.
In a note released to investors on June 28, James Hardiman at Citi maintained a ‘Neutral’ rating on Carnival Corporation & plc (NYSE:CCL) stock with a target price of $12.50. The target price reflects healthy potential upside of over 41%. Carnival Corporation & plc (NYSE:CCL) shares gained as investors priced in the positive comments made by the management during the company’s Q2 FY22 results that were posted on June 24. The analyst sees strong forward indicators for the company in 2023. Hardiman also highlighted that Carnival Corporation & plc (NYSE:CCL) stock is trading at a near-pandemic low and provides an opportunity for investors to be constructive on the stock. However, the analyst expects the macroeconomic developments to drive the short-term trading cycle.
Carnival Corporation & plc (NYSE:CCL) was discussed in the Q1 2021 investor letter of ClearBridge Investments. Here’s what the firm 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.”
As of Q1 2022, 32 hedge funds held a stake in Carnival Corporation & plc (NYSE:CCL).
4. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
Number of Hedge Fund Holders: 35
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a Miami, Florida-based cruise line company, which stands as the third-biggest in the world in terms of passenger volume. The company has a fleet of 17 ships that cover 490 destinations globally. By 2027, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) intends to add nine more ships to its fleet.
On June 28, Brandt Montour at Barclays initiated coverage on Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) stock with an ‘Equal Weight’ rating and a price target of $14. The analyst observed a loyal customer base and a heavy demand for cruise line companies. Furthermore, Montour shared that there is significant demand building up for cruise-based vacations as compared to land-based vacations. According to travel agencies, consumers are responding positively to attractive pricing and promotions, which will benefit companies like Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH).
Out of the 912 hedge funds in Insider Monkey’s database that filed 13Fs in Q1, 35 held a stake in Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) as of March 31.
3. Royal Caribbean Cruises Ltd. (NYSE:RCL)
Number of Hedge Fund Holders: 36
Royal Caribbean Cruises Ltd. (NYSE:RCL) is the second-biggest cruise line company in the world, with its headquarters in Miami, Florida.
On June 29, in a detailed report covering the U.S Gaming, Lodging, and Leisure sector, Brandt Montour at Barclays picked Royal Caribbean Cruises Ltd. (NYSE:RCL) as the top pick in the cruise industry with an ‘Overweight’ rating and a target price of $56. The target price assumes potential upside of over 71% as of July 13. The analyst has selected Royal Caribbean Cruises Ltd. (NYSE:RCL) as his top industry pick due to the company’s brand strength, hospitality, and product innovation.
Royal Caribbean Cruises Ltd. (NYSE:RCL) was held by 36 hedge funds as of Q1 2022.
2. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 88
Expedia Group, Inc. (NASDAQ:EXPE) is not a pure-play in the cruise industry, much like the Walt Disney Company (NYSE:DIS). However, the company provides exposure to the cruise industry as it deals in providing cruise packages to customers through its online travel platform.
Expedia Group, Inc.’s (NASDAQ:EXPE) cruise division has 100 employees in Vancouver, Canada. The company is also looking to expand its services in Asia and Europe. Although Caribbean cruises still generates a significant amount of revenue, river cruises are also gaining momentum across Asia.
On June 28, Thomas Champion at Piper Sandler gave Expedia Group, Inc. (NASDAQ:EXPE) an ‘Overweight’ rating with a target price of $155. The analyst sees the business-to-business (B2B) division of Expedia Group, Inc. (NASDAQ:EXPE) generating strong growth and achieving $5 billion in sales by 2027, following the comments made by Expedia’s management during the Explore’22 Conference.
Aristotle Capital Management shared its stance on Expedia Group, Inc. (NASDAQ:EXPE) in its Q1 2022 investor letter. Here’s what the firm said:
“Expedia outperformed in the first quarter following a better-than-expected earnings report for the company’s fourth quarter of 2021. During the pandemic, the company reduced expenses which has improved operating leverage as revenue recovers. Expectations for travel in 2022 have improved as COVID cases have declined.”
1. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 113
The Walt Disney Company (NYSE:DIS) is a Burbank, California-based media and entertainment corporation. The cruise division of Disney does not receive the same focus as the media and theme parks’ divisions, but the segment contributes significantly to the top and bottom lines of The Walt Disney Company (NYSE:DIS).
The cruise line division of The Walt Disney Company (NYSE:DIS) has five ships under its service. The most recent is Disney Wish, which will start its first voyage on July 19. The Walt Disney Company (NYSE:DIS) intends to add her sister ships in 2024 and 2025. The 4,000-passenger ship has numerous Disney-themed attractions ranging from a Star Wars Lounge to a Marvel-themed dining area.
Here’s what Harding Loevner said about The Walt Disney Company (NYSE:DIS) in its Q1 2022 investor letter:
“The war in Ukraine has given new urgency to the question of whether globalization has reached a tipping point and if the familiar web of decentralized, just-in-time, global supply chains will be a casualty of the inward turn dividing countries into competing trading blocs. It is probably too soon to know. We sold Disney (NYSE:DIS), due to some concerns about the increasing capital intensity of its business amid signs of rising competition and slowing growth in streaming media consumption.”
Of the 912 hedge funds tracked by Insider Monkey’s database that filed 13Fs for the Q1 period, 113 of them held a stake in The Walt Disney Company (NYSE:DIS) as of March 31, up from 111 in the preceding quarter.
You can also take a peek at the Top 10 Stock Picks of Jose Fernandez’s Stepstone Group and The 10 Best Stocks to Buy Now According to Billionaire Paul Tudor Jones.
