Here Are 3 Top Cruise Ship Stocks To Check Out In The Stock Market Today
It’s no secret that the cruise industry was hit hard by the pandemic. Cruises were canceled, ships were stranded, and passengers were left scrambling to get home. As a result, cruise ship stocks plummeted in the stock market, and many companies are still struggling to recover. Notably, let’s look at Lindblad Expeditions Holdings Inc (NASDAQ: LIND), and The Walt Disney Company (NYSE: DIS). Year-to-date shares of both companies are down 32.33% and 22.10%, respectively. However, there are signs that the industry is beginning to turn a corner. Though, rising inflation and labor shortages can pose risks to the industry’s outlook.
Cruise bookings for 2022 are already up 20% from this time last year, and experts expect that number to continue to rise. In addition, several cruise lines have announced plans to resume sailing in the coming months. This renewed interest in cruising means that cruise line stocks are likely to rebound in the coming year. So if you’re thinking about investing in the cruise ship stocks, here are three for your list this week.
Cruise Ship Stocks To Buy [Or Avoid] Today
- Norwegian Cruise Line Holdings (NYSE: NCLH)
- Royal Caribbean Cruises Limited (NYSE: RCL)
- Carnival Corporation (NYSE: CCL)
Norwegian Cruise Line Holdings (NCLH Stock)
First up, Norwegian Cruise Line (NCLH) is the world’s third-largest cruise company. Currently, the company has a combined 29 ships with over 62,000 berths. Furthermore, these brands offer itineraries to approximately 500 destinations across the globe. As of May of this year, Norwegian Cruise Line has redeployed its entire fleet. Moving on, in August the company reported its second quarter 2022 financial results.
In them, Norwegian Cruise Ord (NCLH) reported a Q2 loss of $1.22 per share on revenue of $1.2 billion. The consensus estimate was a loss of $0.87 per share on revenue of $1.3 billion. Moreover, NCLH exited the second quarter with $1.9 billion in cash equivalents, which represents a meaningful improvement from pre-pandemic levels. In fact, NCLH posted a 27,079.1% revenue increase on a year-over-year basis.
Frank Del Rio, President & CEO of Norwegian Cruise Line Holdings commented, “We are encouraged by the continued strong consumer demand we are experiencing which is reflected in our record pricing, accelerating booking volumes, especially for 2023 and beyond, and highest ever onboard revenue generation. Having emerged from the pandemic and returning to more normal operations, we remain steadfast in our strategy and commitment to protect our brands’ positioning and industry-leading pricing, which we firmly believe is the best way to maximize long-term value for all our stakeholders.”
Shares of NCLH are still down over 40% in the last year of trading. Meanwhile, NCLH stock has rebounded over 11% in the last month of trading and is set to open Thursday’s trading day at $13.90 per share. With that, will you be watching NCLH stock today?
Royal Caribbean Cruises (RCL Stock)
Following that, let’s check out Royal Caribbean Group (RCL). For starters, the company is the world’s second-largest cruise line operator. For a sense of scale, RCL has a global fleet of over 60 ships traveling to more than 1,000 destinations around the world. The company is the owner and operator of three award-winning cruise brands. Notably, they are Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. At the end of July, RCL reported its second-quarter 2022 earnings results.
Moreover, Royal Caribbean Cruises (RCL) reported a loss of $2.08 per share on revenue of $2.2 billion for Q2. This is in comparison to wall street consensus estimates of a loss of $2.23 per share on revenue of $2.1 billion. Additionally, revenue advanced by 4,190.1% during the same period, in 2021. On top of that, the company provided some outlook for Q3 2022. In detail, Royal Caribbean announced that the third quarter of 2022 expects to generate approximately $2.9 billion – $3.0 billion in total revenue.
“We reached two important milestones in our recovery this quarter – returning our entire global fleet back to operations and delivering positive operating cash flow and EBITDA,” stated Jason Liberty, president, and chief executive officer of Royal Caribbean Group. “Consumers’ propensity to travel and cruise remains strong. We continue to see a robust and accelerating demand environment for cruising and on-board spend.” Though shares of RCL stock are down over 40% year-to-date, the stock has recovered more than 21% in the last month of trading alone. Considering this, do you think RCL stock is a buy right now?
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Carnival Corporation (CCL Stock)
Last but not least, Carnival Corporation (CCL). For the uninitiated, Carnival is a towering presence in the global cruise industry. Notably, the company’s portfolio of global cruise line brands includes Carnival Cruise Line, Princess Cruises, Holland America Line, and others. For a sense of scale, through its brands, the company boasts a fleet of 100 ships visiting more than 700 ports around the world and totaling 223,000 lower berths. Also, the company has eight new ships to be delivered to its brands through 2025. At the end of June, Carnival reported its second quarter 2022 earnings results.
Diving in, Carnival posted a miss for its most recent quarterly update. In detail, the company posted a second-quarter loss of $1.64 per share on revenue of $2.4 billion. For context, wall street estimates was a loss of $1.14 per share, on revenue of $2.6 billion. However, revenue increased by 4,702.0% on a year-over-year basis.
Arnold Donald, Vice Chair of the Boards of Directors, Arnold Donald commented, “Carnival Cruise Line, our largest brand, achieved consistently positive adjusted EBITDA beginning in March. Carnival Cruise Line also became our first brand to sail its entire fleet in May and is expecting occupancy to approach 110 percent during our third quarter.” Shares of CCL stock have rebounded by over 7% in the last month of trading action. Given this, is CCL on your cruise ship stock watchlist?