Some of the best opportunities can be found in cruise stocks.
In fact, as we said at the end of October, there’s big opportunity in them all thanks to substantial, growing interest in what many say is the ultimate vacation.
As noted by CNBC, “The demand for cruises is still going strong — and it doesn’t appear to be letting up anytime soon. The industry was the last to recover from the pandemic, but once it did, it has been enjoying strong pricing and booking momentum.”
Company: Royal Caribbean (SYM: RCL) When we mentioned RCL in late October, it traded at $208. It’s now up to $255.54. The company just raised its annual profit forecast thanks to stronger demand for cruises. Royal Caribbean now expects 2024 adjusted earnings per share of $11.57 to $11.62, compared with its earlier expectation of between $11.35 and $11.45. Even better, analysts at William Blair expect the company to see a healthy 20% profit growth in 2025. “Investors recognize that Royal Caribbean has evolved into a more consistent, higher-return business,” they added, as also quoted by Reuters. |
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Company: Carnival (SYM: CCL) Carnival traded at $22 in late October. It’s now at $26.60. Not long ago, Carnival “said it is poised to deliver record operating performance for full year 2024, with adjusted EBITDA now expected to cross $6 billion and adjusted return on invested capital to be approximately 10.5 percent. CCL management said strong demand enabled the cruise line operator to increase its full-year yield guidance for the third time this year on favorable cost guidance,” as noted by Seeking Alpha. Even better, the company says its booking volume for 2025 is above 2024’s record. |
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Company: Norwegian Cruise Line (SYM: NCLH) Norwegian Cruise Line is also seeing smooth sailings. In late October, NCLH traded at $24. It’s now up to $27.56. Helping, analysts at Citi recently upgraded NCLH to a buy rating thanks to the cruise operator’s potential for big earnings upside and expansion. Bank of America also believes NCLH could produce Q4 net yield growth of +5.9% versus +5.5% consensus estimates, and EPS of $0.09 compared to the $0.08 consensus. |