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While many travel companies were affected by the pandemic, cruise lines were some of the most severely hurt. Cruise ships were docked for more than a year, causing their owners to miss out on billions of dollars in earnings. Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks. These are the cruise line stocks that had the highest returns or smallest declines in total return over the past 12 months out of the companies we looked at. Lindblad Expeditions (LIND -1.77%) isn't your typical cruise company, and that could make it a safer play than most cruise line stocks.
Services Overview
That said, investors need to understand that, although ships are starting to sail again, the future of cruising is still uncertain. Some of their notable customers include the cruise lines on our list, such as Carnival, Norwegian, and Royal Caribbean. After going public just in 2018, Fincantieri’s market performance has decreased each year until finally seeing growth in 2021. The hospitality industry was not the only industry affected by Covid-19 as consumers have traveled less.
Sabre Corporation (NASDAQ:SABR)
These are the cruise line stocks with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales can help investors to identify companies that are able to grow revenue organically or through other means and to find growing companies that have not yet reached profitability. In addition, accounting factors that may not reflect the overall strength of the business can significantly influence earnings per share (EPS). There are just four pure-play cruise line companies easily available to U.S. investors, but we look at them in our usual style.
Royal Caribbean Cruises Management
All other cruise industry stocks have lost value in the past year, a sign there could still be room for further recovery. Cruise line companies are seeing a strong rebound after years of COVID-related setbacks, with passenger booking rates up industry-wide. Still, just one stock—Royal Caribbean Group—has outperformed the broader market in the last year. Norwegian Cruise Line Holdings (NCLH 0.66%) is a hit among casual cruisers and is known for its laid-back atmosphere.
Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
With a more loyal customer base, Royal Caribbean may see a quicker rebound in the coming months than smaller cruise lines. Royal Caribbean also just raised its annual adjusted earnings per share to a new range of $9.90 to $10.10 for a prior range of $9.50 to $9.70. “Bookings have been significantly higher than during the same period last year, with the back half of the year up by more than the front half,” the company added. The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank. The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible. The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier. Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
Knights of Columbus Asset Advisors LLC Acquires 182,430 Shares of Norwegian Cruise Line Holdings Ltd. (NYSE ... - MarketBeat
Knights of Columbus Asset Advisors LLC Acquires 182,430 Shares of Norwegian Cruise Line Holdings Ltd. (NYSE ....
Posted: Sat, 20 Apr 2024 13:31:58 GMT [source]
Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. As things begin to return to normal, all signs point to cruise stocks seeing healthy increases. Investors looking to take on a little risk for significant returns should consider purchasing some of these cruise stocks.
Norwegian offers what it calls "freestyle cruising," meaning its cruises have no dress codes, no set dining times, and no assigned seating. Royal Caribbean (RCL 1.23%) is distinguished as being one of the most innovative cruise lines. Its ships are packed with state-of-the-art amenities, including virtual balconies, massive water slides, skydiving at sea, and even Broadway shows.
It seems they may have gone public at one of the least advantageous times, considering the current performance of hospitality stocks. Fincantieri is the first stock on our list that is solely devoted to cruise ship construction. The fuel service industry also saw a significant drop in performance, reflected in the incredibly low price of gas. This company offers travel that goes beyond what you’d typically expect on a cruise line.
Smaller operators, such as Oslo-based luxury cruise line SeaDream Yacht Club, report overwhelming demand for bookings in 2024 and beyond, with reservations already open for autumn 2026. Similarly, travel agencies like Marvelous Mouse Travels and InteleTravel have experienced a significant uptick in demand, surpassing pre-pandemic booking levels by considerable margins. To benefit from this opportunity, online travel companies, including Booking.com, are capitalizing on this trend, launching cruise verticals to cater to the growing demand. The market performance number above and all statistics in the tables below are as of Oct. 4, 2022. Below, we look at the top three cruise line stocks with the best value, fastest growth, and best performance.
With occupancy levels steadily approaching pre-pandemic levels, cruise operators are contemplating adjustments in pricing strategies to capitalize on the skyrocketing demand. However, this heightened interest in cruise vacations comes against the backdrop of cancellations and postponements of travel plans to other regions, particularly the Middle East. The Cruise Lines International Association predicts 35.7 million passengers in 2024, a 6% increase from 2019.
#1 (Strong Buy) stocks have produced an unmatched +25.41% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day. However, sales growth can also prove to be potentially misleading about the strength of a business—growing sales does not guarantee a company will eventually become profitable. Below, we look at the top cruise line stocks for 2023 based on best value, fastest growth, and best performance. The Russell 1000 benchmark figure above is as of May 29, while all other data throughout are as of May 23. These are the cruise line stocks that had the smallest declines in total return over the past 12 months out of the companies we looked at.
Similarly, solo cruise travel is on the rise, prompting cruise lines to enhance offerings for solo travelers by increasing single-cabin availability. Additionally, expedition cruises are experiencing a surge in popularity, driven by the desire for immersive, responsible, and bucket-list travel experiences. This trend is evident across all age groups, with the number of passengers on expedition cruises more than doubling from 2016 to 2022. Carnival CEO Josh Weinstein highlighted concerns about potential inventory shortages despite a 5% increase in capacity compared to 2023.
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