In this article we will take a look at the 5 best vacation stocks to buy now. You can skip our analysis of these companies and go directly to 12 Best Vacation Stocks to Buy Now.
5. Airbnb, Inc. (NASDAQ: ABNB)
Number of Hedge Fund Holders: 68
Airbnb, Inc. (NASDAQ: ABNB) is a California-based company that puts users who want to book lodgings for different purposes with landlords seeking short-term renters. The firm primarily runs through a website and mobile application. Airbnb held an initial public offering in December 2020 and is now valued at over $106 billion. It posted more than $3.3 billion in annual revenue in 2020, down due to the pandemic from $4.8 billion reported in 2019. The company was founded in 2007 and comes in at fifth place on our 12 best vacation stocks to buy now.
Investment bank Needham called Airbnb, Inc. (NASDAQ: ABNB) an online travel stock winner on April 27 and gave it a Buy rating with a price target of $210. On April 28, the firm announced that it was partnering with payments firm Visa to facilitate the movement of money from Airbnb accounts to any accounts with Visa cards.
Out of the hedge funds being tracked by Insider Monkey, California-based investment firm Silver Lake Partners is a leading shareholder in the firm with 2.5 million shares worth more than $375 million.
4. Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
Number of Hedge Fund Holders: 40
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) is a Florida-based cruise line founded in 1966. It is ranked fourth on our list of 12 best vacation stocks to buy now. The firm owns and operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. These take vacation goers to many countries, including North America, Russia, the Mediterranean, the Greek Isles, and India, among others. The company has 28 ships that offer accommodation to more than 50,000 people.
Norwegian Cruise Line Holdings Ltd. announced on April 28 that it was preparing to resume operations from Spain and Italy as the vaccine rollout in Europe allowed for people to travel together again. Earlier in April, the stock of the firm had rallied after investment bank Goldman Sachs pointed out many positives for the travel industry in 2021.
At the end of the fourth quarter of 2020, 40 hedge funds in the database of Insider Monkey held stakes worth $334 million in the firm, up from 26 in the preceding quarter worth $241 million.
In the Q4 2020 investor letter, Brown Capital Management Mid Company Fund highlighted a few stocks and Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is one of them. Here is what the fund said:
“Norwegian Cruise Line Holdings (NCLH) is a diversified operator of leading global cruise lines spanning market segments from contemporary to luxury under the Norwegian Cruise Line, Oceanic Cruises and Regent Seven Seas Cruises brands. These brands operate a combined 28 ships. Norwegian was eliminated from the portfolio, as we no longer believe it meets our definition of an Exceptional Growth Company, as discussed in our first quarter letter. There are still many unknowns as to when we will see a fully normalized operating environment with a high degree of confidence.”
3. Royal Caribbean Group (NYSE: RCL)
Number of Hedge Fund Holders: 37
Royal Caribbean Group (NYSE: RCL) is a Miami-based firm that organizes cruise tours. Some of the lines it operates include Silversea Cruises, Azamara, Celebrity Cruises, and others. The vacations organized by the firm travel to hundreds of different global locations. The company also owns the ships used for these cruise offerings. It was founded in 1968 and is placed third on our list of 12 best vacation stocks to buy now. More than 130,000 people can take a vacation when the firm is operating the ships at full capacity.
On April 29, Royal Caribbean Group released quarterly earnings and reported earnings per share of -$4.44, beating market estimates by $0.17. The quarterly revenue was $42 million, still a long way off from pre-pandemic highs. Although the firm has been impacted heavily by COVID-19, it is hopeful for the rest of 2021 as operations are set to resume fully in the coming weeks.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in the firm with 2.1 million shares worth more than $161 million.
In one of their investor letters, Tidefall Capital Management highlighted a few stocks and Royal Caribbean Cruises Ltd (NYSE:RCL) is one of them. Here is what Tidefall Capital Management said:
“Part of our positive return was due to our purchase of put options on Royal Carribean stock as a form of portfolio insurance. These options gave us the right to sell the stock at $40 in June; at the time the stock was $65. Given the lethality of Covid-19 and the heightened risk to the older customer base of cruise passengers, the put options priced at $2.74 appeared to offer a case of ‘heads I lose a little, tails I win a lot.’ (The most we could have lost was 2% of the fund). Government support seemed unlikely since all major cruise operators are incorporated abroad to avoid paying US corporate income taxes. Fortunately, in one week Royal Carribean stock declined by more than half to $30 and the options increased in value to $15.30, more than five times our cost.”
2. Lindblad Expeditions Holdings, Inc. (NASDAQ: LIND)
Number of Hedge Fund Holders: 11
Lindblad Expeditions Holdings, Inc. (NASDAQ: LIND) is a New York-based vacation firm that offers special packages to exotic and far-flung tourist spots. It was founded in 1979 and is placed second on our list of 12 best vacation stocks to buy now. The company is famous for adventure travel tours, including voyages, and owns expedition ships and carter vessels for the purpose. The firm owns 14 ships in total. It also operates the Natural Habitat brand and provides customers with bike tours. It has an online presence as well.
Lindblad Expeditions Holdings, Inc. has a market cap of more than $800 million and posted more than $82 million in annual revenue in 2020, down from close to $400 million in 2019. Even though the pandemic hit the firm hard, the share price has soared more than 7% over the past month as the company announced resumption of voyages in the summer.
At the end of the fourth quarter of 2020, 11 hedge funds in the database of Insider Monkey held stakes worth $99 million in the firm, down from 16 in the preceding quarter worth $48 million.
1. Marriott Vacations Worldwide Corporation (NYSE: VAC)
Number of Hedge Fund Holders: 21
Marriott Vacations Worldwide Corporation (NYSE: VAC) is a Florida-based company that manages vacations and offers vacation-related products. The company runs several resorts and the Marriott Vacation Club, Grand Residences by Marriott, Sheraton Vacation Club, Westin Vacation Club, Hyatt Residence Club, and others. The company manages more than 100 properties in the United States and was founded in 1984. It is placed first on our list of 12 best vacation stocks to buy now.
Marriott Vacations Worldwide Corporation (NYSE: VAC) announced at the beginning of this month that it had completed a $485 million deal to purchase competitor Welk Resorts. According to the firm, the acquisition was made for the Hyatt Residence Club which will grow 50% with the merger of Welk into the Marriott Vacation brand.
Out of the hedge funds being tracked by Insider Monkey, Westport-based investment firm Iridian Asset Management is a leading shareholder in the firm with 1 million shares worth more than $141 million.
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