Take advantage of the pullback in cruise stocks.
For one, companies, like Carnival (CCL) are forecasting strong bookings for 2025 ahead of the summer travel season. “2025 is shaping up to be another banner year, with yield growth expected to far outpace historical growth rates and again exceed unit cost growth,” CEO Josh Weinstein said, as quoted by Reuters.
Two, some of the biggest cruise stocks pulled back with the broader market and have become screaming buy opportunities.
Look at Royal Caribbean (SYM: RCL).
The company just raised its annual profit forecast thanks to strong, growing demand. Plus, brokerage William Blair expects 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,” analyst Sharon Zackfia said, as quoted by Reuters.
RCL also raised its dividend to 55 cents, payable January 13 to shareholders of record as of December27. Technically, after testing a high of $260, RCL slipped to support at around $226, where it also became over-extended on RSI, MACD and Williams’ %R. From its last traded price of $238.43, we’d like to see RCL initially retest $260.
Carnival (SYM: CCL)
Carnival (CCL) is also starting to pivot higher after a brief pullback to $25. We’d like to see CCL closer to $30 near term. Helping, the company just announced its full-year 2024 revenues hit an all-time high with profits up 2,500% from a loss of six cents in 2023 to $1.44.
“This has been an incredibly strong finish to a record year,” said Carnival CEO Josh Weinstein, adding revenues hit a record high driven by a strong demand environment that enabled the company to outperform its initial 2024 guidance by $700M and deliver nearly $2B more to the company’s bottom line year-over-year.
Norwegian Cruise Line (SYM: NCLH)
NCLH is also starting to cruise higher after dipping to $25. We’d also like to see NCLH closer to $30 near-term. Goldman Sachs just upgraded the stock to a buy rating with a $35 price target.
“Goldman’s Lizzie Dove sees multi-year pricing tailwinds generated by a number of factors, including: cruise demand outpacing the relatively benign supply setup in the industry; the “halo effect” from new ship launches; less discounting need to fill ships; and future land investments,” reported Seeking Alpha.
In Other News: Man Who Called Nvidia Says “Buy These Five AI Stocks.”
In 2016, Jeff Brown called Nvidia at a split-adjusted 66 cents.
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