In this article, we discuss 5 best cruise stocks to buy right now. If you want to see more stocks in this selection, check out 11 Best Cruise Stocks To Buy Right Now.
5. Marriott International, Inc. (NASDAQ:MAR)
Number of Hedge Fund Holders: 46
Marriott International, Inc. (NASDAQ:MAR) is an American multinational company that operates and franchises hotel, residential, and timeshare properties. Marriott International, Inc. (NASDAQ:MAR) offers cruise and vacation deals to its guests, who can also redeem loyalty points to win cruise deals. On August 4, Marriott International, Inc. (NASDAQ:MAR) declared a $0.30 per share quarterly dividend, in line with previous. The dividend was paid to shareholders on September 30. Marriott International, Inc. (NASDAQ:MAR) is one of the best cruise stocks to buy now.
On September 15, Berenberg analyst Stuart Gordon upgraded Marriott International, Inc. (NASDAQ:MAR) to Buy from Hold with a price target of $185, up from $165. The analyst said the fast recovery in lodging has yet to be reflected in the shares. “Even allowing for the threat of a recession moving into 2023, the shape of the recovery means that we expect strong RevPAR increases in 2023 across the sector,” the analyst told investors in a research note.
According to Insider Monkey’s data, 46 hedge funds were bullish on Marriott International, Inc. (NASDAQ:MAR) at the end of June 2022, compared to 52 funds in the earlier quarter. Boykin Curry’s Eagle Capital Management is the leading position holder in the company, with 8.81 million shares worth $1.2 billion.
Here is what Aristotle Capital Management Small Cap Equity has to say about Marriott International Inc. (NYSE:MAR) in its Q1 2022 investor letter:
“Marriott International 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 improved operating leverage as revenue recovers. Expectations for travel in 2022 have improved as COVID cases have declined. The company has a strong pipeline of new hotels coming into the Marriott system. There are some indications that business-related travel is starting to recover.”
4. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 57
Airbnb, Inc. (NASDAQ:ABNB) is a California-based company that operates an online marketplace delivering lodging and travel experiences. Airbnb, Inc. (NASDAQ:ABNB) offers cruise bookings online as well. The company had its most profitable Q2 ever, with a net income of $379 million. Airbnb, Inc. (NASDAQ:ABNB) also announced a $2 billion share repurchase program. The management expects a Q3 revenue between $2.78 billion and $2.88 billion, versus a consensus revenue estimate of $2.78 billion.
On September 23, Tigress Financial analyst Ivan Feinseth maintained a Buy recommendation on Airbnb, Inc. (NASDAQ:ABNB) but lowered the price target on the shares to $160 from $214. As travel demand shrinks from peak levels, the analyst sees a short-term re-rating of valuation, but argued that Airbnb, Inc. (NASDAQ:ABNB)’s robust brand equity and “industry-leading status as the alternative lodging provider remains intact.” Airbnb, Inc. (NASDAQ:ABNB) will continue to benefit from travel trends that favor its unique travel offerings, the analyst added.
According to Insider Monkey’s data, 57 hedge funds were bullish on Airbnb, Inc. (NASDAQ:ABNB) at the end of June 2022, compared to 66 funds in the earlier quarter. Jim Simons’ Renaissance Technologies is the largest position holder in the company, with 5.60 million shares worth $499 million.
Here is what Brick By Brick Capital has to say about Airbnb, Inc. (NASDAQ:ABNB) in its Q2 2022 investor letter:
“What is millennial tech?
It is a term I have coined to describe the type of companies I research. It is a disruptive technology that is changing the status quo of a given industry. For example, Airbnb (NASDAQ:ABNB) with the lodging industry. This definition casts a wide net in terms of what sectors I look at, but it is very specific in terms of what type of companies I look at. I also believe focusing on these companies gives me an inherent edge over Wall St. as they are often older and disconnected from what is truly innovative.
Small-to-mid cap companies
This refers to the size of the underlying company and specifically companies whose market capitalization are under $10 billion. Now $10 billion is a huge number, but for example Airbnb has a $74 billion market cap.
These small to mid-cap companies are often under-followed by Wall St. and therefore lead to opportunities to make money. This is because the lack of coverage creates fundamental misunderstandings about the businesses, which then creates a divergence between the stock price and underlying business prospects. Also, many investment managers cannot own these smaller stocks due to their own mandates, which I feel gives me an inherent edge as there are less eyeballs on the name and therefore information gaps that I can uncover.
Many assume there is a multitude of factors that make stocks go up or down when in reality it all boils down to one singular thing.”
3. Hilton Worldwide Holdings Inc. (NYSE:HLT)
Number of Hedge Fund Holders: 60
Hilton Worldwide Holdings Inc. (NYSE:HLT) is an American hospitality company that owns, leases, manages, and franchises hotels and resorts. Hilton Worldwide Holdings Inc. (NYSE:HLT) also provides cruise travel to its customers. On September 19, the company revealed that it had signed an agreement to develop living facilities for astronauts aboard the Voyager Starlab.
On September 15, Berenberg analyst Stuart Gordon upgraded Hilton Worldwide Holdings Inc. (NYSE:HLT) to Buy from Hold with a price target of $152, up from $140. The analyst said the rapid recovery in lodging has yet to be factored into the shares. He now has Buy ratings on all hotel operators under his coverage.
Among the hedge funds tracked by Insider Monkey, Hilton Worldwide Holdings Inc. (NYSE:HLT) was part of 60 public stock portfolios at the end of June 2022, compared to 52 funds in the prior quarter. Bill Ackman’s Pershing Square is the leading stakeholder of the company, with 9.90 million shares worth $1.10 billion.
Here is what Pershing Square Holdings specifically said about Hilton Worldwide Holdings Inc. (NYSE:HLT) in its Q2 2022 investor letter:
“Hilton Worldwide Holdings Inc. (NYSE:HLT) is a high-quality, asset-light, high-margin business with significant long-term growth potential, led by a superb management team. The unforeseen arrival of the COVID-19 pandemic catalyzed a rapid and near-complete standstill in global travel, with RevPAR (the industry metric for same-store sales at a given hotel) down roughly 90% at the nadir of the pandemic. We increased our investment in Hilton during the pandemic as we believed the economic dislocation from COVID-19 would prove to be transient and that industry projections regarding the timeline for recovery were too pessimistic.
From the moment the pandemic began, Hilton’s management team took decisive actions to ensure the company not only managed through what it knew would be a challenging period, but also positioned the company to generate improved margins, cash flows, and investment returns once the business recovered. In hindsight, Hilton’s experience with COVID-19 – the 100-year proverbial flood – affirmed the company’s unique high-quality, asset light, high-margin business model, and reinforced our belief that Hilton deserves a premium valuation.
While Hilton entered 2022 impacted by the Omicron variant, results have vastly improved throughout the year as COVID-19 has evolved towards a more endemic virus, and consumer behavior has adapted accordingly. In recent months, Hilton’s system-wide RevPAR has surpassed 2019 levels and continues to improve. Recent strength has been led by domestic leisure travel occasions as consumer spending continues to shift from goods to services. …” (Click here to read the full text)
2. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 80
Expedia Group, Inc. (NASDAQ:EXPE) is a Seattle-based online travel company. In addition to providing lodging and travel experiences, Expedia Cruise offers advice for travelers booking cruises. The company posted record-breaking numbers for the second quarter of 2022, and the stock got a boost from higher bookings and revenue. Expedia Group, Inc. (NASDAQ:EXPE) is one of the best cruise stocks to buy right now.
On September 12, DA Davidson analyst Tom White maintained a Neutral rating on Expedia Group, Inc. (NASDAQ:EXPE) and lowered the price target on the shares to $122 from $195. The analyst updated his model to reflect the recent recovery in global travel demand, which he believes might be impacted by broader macro and inflation-related slowdowns in travel spending starting next year.
According to Insider Monkey’s data, 80 hedge funds were long Expedia Group, Inc. (NASDAQ:EXPE) at the end of Q2 2022, compared to 88 funds in the last quarter. Daniel Sundheim’s D1 Capital Partners is the leading stakeholder of the company, with 6.15 million shares worth $583.6 million.
Here is what Carillon Tower Advisers specifically said about Expedia Group, Inc. (NASDAQ:EXPE) in its second quarter 2022 investor letter:
“Online travel company Expedia Group, Inc. (NASDAQ:EXPE) underperformed after posting quarterly results that were slightly below market expectations. The company’s results were negatively impacted by the omicron variant early on in the quarter and then later the war in Ukraine. Despite this, positive forward commentary from the company noted a recovery in booking trends that point toward these issues being temporary.”
1. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 93
Booking Holdings Inc. (NASDAQ:BKNG) was founded in 1997 and is headquartered in Norwalk, Connecticut. The company provides travel and restaurant reservations worldwide. Booking Holdings Inc. (NASDAQ:BKNG) also offers cruise bookings online. The company projects “record revenue” in Q3 2022 on the back of strong travel demand. Booking Holdings Inc. (NASDAQ:BKNG) is one of the best cruise stocks to buy right now.
Investment Advisory DA Davidson reiterated a Neutral on Booking Holdings Inc. (NASDAQ:BKNG) and lowered the price target on Booking Holdings Inc. (NASDAQ:BKNG) to $2,150 from $2,300. Analyst Tom White issued the ratings update on September 12.
According to the second quarter database of Insider Monkey, 93 hedge funds held stakes worth $5.4 billion in Booking Holdings Inc. (NASDAQ:BKNG), compared to 99 funds in the last quarter. Harris Associates is the leading position holder in the company, with 616,383 shares worth over $1 billion.
Here is what Matrix Asset Advisors specifically said about Booking Holdings Inc. (NASDAQ:BKNG) in its Q2 2022 investor letter:
“We started a new position in Booking Holdings Inc. (NASDAQ:BKNG) a leading global online travel company. Bookings has the largest market share in the online travel agency business through its Bookings.com, Priceline.com, Agoda, Kayak, OpenTable, Rentalcars, and Etraveli franchises. Before Covid, BKNG was growing at a double-digit rate with earnings reaching $102 per share in 2019. The company’s business was hit hard during Covid but remained profitable. As global economies emerge from Covid, the travel business and Bookings have recovered quickly but the stock has been a casualty of the NASDAQ sell-off. The company has a strong balance sheet and shareholder-oriented management. We think the share price decline provided a good entry point for this high-quality company in an industry with strong growth prospects.”
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