As Covid-19 swept around the globe, many were horrified to see outbreaks taking place aboard cruise ships.
As travel became more restricted, cruise lines were one of the first in the travel industry to see setbacks.
Major cruise ships are just now starting to set sail again, and people will be seeking opportunities to enjoy the travels they haven’t been able to for over a year.
This makes right now a great time to look into cruise stocks.
We’ve compiled a list of the best cruise stocks to buy now to take advantage of the likely market upswing in the coming months.
Best Cruise Stocks
Norwegian Cruise Line Holdings (NYSE: NCLH)
Norwegian Cruise Line is a cruise line incorporated in Bermuda and headquartered in Miami.
Founded in 1966, Norwegian Cruise Line is the third largest cruise line in the world in terms of the number of passengers.
The company has a fleet of 28 different ships that sail to nearly 500 destinations.
The forward-thinking company looks to add nine more ships to their fleet in the next five years.
Additionally, the company owns two private islands in the Caribbean.
Norwegian Cruise Line Holdings controlled about 8.6% of the world’s cruise passenger market in 2021.
The company now holds a market cap of $9.67 billion.
In 2019, the company saw revenue of over $6 billion.
Like all the other cruise stocks on our list, Norwegian saw a near-complete loss of revenue for the 2020 year.
The cruise line has just started sailing again in July of this year.
Norwegian Cruise Line Holdings has been working closely with the CDC to ensure that the safety of their guests is taken into consideration on their cruise ships.
Norwegian Cruise Line Holdings hopes to see a higher share price now that sailing has returned.
Royal Caribbean Group (NYSE: RCL)
Royal Caribbean Group (formerly known as Royal Caribbean Cruises LTD.) is the second-largest cruise line in the world.
They currently own four separate cruise lines: Royal Caribbean International, Celebrity Cruises, Azamara Cruises, and Silversea Cruises.
The company is incorporated in Liberia and headquartered in Miami, Florida.
Royal Caribbean currently has a total of 24 ships in its fleet, with more coming.
They aim to wow its guests with a luxurious formal setting and high-tech entertainment.
When compared with other cruise lines, Royal Caribbean is considered a high-end brand.
Royal Caribbean saw a significant drop in market performance due to Covid-19 but is making strides to regain lost shares as they start sailing again.
The company’s market cap is currently over $20.7 billion.
With a more loyal customer base, Royal Caribbean may see a quicker rebound in the coming months than smaller cruise lines.
Investors may need to be patient with the amount of time they hold this stock (or any other hospitality stock, for that matter).
Those willing to take the risk may see incredible returns in the long term.
Carnival Corporation & PLC (NYSE: CCL)
Second to none, Carnival is currently the world’s largest travel leisure company, followed by Royal Caribbean and Norwegian.
As a British-American cruise line operator, Carnival is headquartered in Miami, Florida. Carnival owns a portfolio of 87 ships across ten cruise line brands.
The company has two subsidiaries – Carnival Corporation, which operates in the US, and Carnival PLC, which operates in the UK.
Carnival saw its highest market performance in 2018, which it has struggled to reach since.
Since the pandemic hit, Carnival has not done nearly as well as Royal Caribbean, despite their more significant market share.
The company started sailing again in July, mandating that at least 95% of passengers be vaccinated in order to leave port.
While the industry is currently struggling, this company could provide excellent returns in the long run.
Since Carnival is the largest player in the game, it may be the best long-term investment, especially since prices are low right now.
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Best Cruise Ship Stocks To Buy
Lindblad Expeditions Holdings, Inc. (NASDAQ: LIND)
Lindblad Expeditions is a cruise line that has partnered with National Geographic to provide an immersive vacation experience for its guests.
Their fleet includes 15 ships that sail to over 27 locations.
This company offers travel that goes beyond what you’d typically expect on a cruise line.
Using their partnership with National Geographic, Lindblad offers unique expeditions where their customers can see natural beauty up close and personal.
The company has nearly reached a $733 million market cap.
Astonishingly, Lindblad has bounced back from the market crisis much better than any other stock on this list.
They’ve recovered their lost share price since the pandemic and are holding near that amount.
Part of this may be due to the fact that Lindblad’s ships are typically smaller in size and have a lower guest capacity.
This gives the company a competitive advantage, meaning now could be a great time to invest.
Investors will need to consider the fact that travelers may still not be comfortable boarding a secluded ship environment with strangers for quite some time.
The Walt Disney Company (NYSE: DIS)
Known for its media and entertainment production, Disney has now reached a market cap of $323 billion.
After a slight downturn in March, Disney is performing more or less better than they ever have.
Much of the value Disney derives comes from their entertainment venues.
These include multiple parks and their cruise ships, catered to children and family experiences.
Their current performance has come as quite a surprise, showing us just how versatile, risk-averse, and diversified their stock really is.
Disney has been able to continue its forward movement by diversifying its industry focus.
With the launch of Disney+, the company was able to take advantage of the huge demand for video streaming platforms, made even more popular by the pandemic.
Experts have projected Disney to have below-average returns for the next few years, reflecting the current overvaluation.
OneSpa World Holdings Ltd. (NASDAQ: OSW)
OneSpa is a holdings company that provides product solutions to cruise lines and other businesses in the hospitality industry.
Their operations include the sale of top-end health, beauty, fitness, and wellness services.
Some of the companies they service include cruises on our list, including Norwegian, Royal Caribbean, and Carnival cruises.
Whether their clients are sailing or located at a variety of travel and hospitality locations on-land, OneSpa is one of the major luxury spa providers for the highest-end hospitality brands.
OneSpa went public near the last month of 2017. Stock trades are currently going for $10.
Although they’ve reached the stock price they had when they went public, the company still has not reached pre-pandemic highs.
A market cap over $735 million suggests that the company has the potential to continue development in the future.
Now that cruise ships are sailing again, their positive momentum should continue.
World Fuel Services Corporation (NYSE: INT)
Based in Miami, Florida, World Fuel Services is an energy, commodities, and service company.
The hospitality industry was not the only industry affected by Covid-19 as consumers have traveled less.
The fuel service industry also saw a significant drop in performance, reflected in the incredibly low price of gas.
The company has three individual segments: land, aviation, and marine life.
The marine life segment will be most relevant to the cruise industry
In the past, World Fuel Services has performed at consistently high prices.
The company has struggled to return to past performance levels but sees a 33.60% share price increase over the past year.
With three unique and separate sectors, the company’s diversification will help to ensure healthy returns across its three sectors as development takes place with the Covid-19 vaccines.
All three of this company’s divisions will likely improve now that cruise ships are sailing again.
This means the potential for significant returns for investors who are willing to invest now.
Cruise Ship Penny Stocks: Ship Builders
Fincantieri (OTCMKTS: FNCNF)
Fincantieri is the first stock on our list that is solely devoted to cruise ship construction.
Based in Italy, Fincantieri is the largest shipbuilder in Europe and the fourth largest shipbuilder in the world.
After going public just in 2018, Fincantieri’s market performance has decreased each year until finally seeing growth in 2021.
It seems they may have gone public at one of the least advantageous times, considering the current performance of hospitality stocks.
Fincantieri has ship creation backlogs through the year 2027.
Some of their notable customers include the cruise lines on our list, such as Carnival, Norwegian, and Royal Caribbean.
Given their well-established industry presence, this stock shows some promise for investors.
Fincantieri trades are now $0.86 a share. This top shipbuilder could see tremendous growth in the near future.Stock Advice That Beats The Market! Stock Advisor's recommendations have beaten the market over the past 19 years. Tired of picking losers? Stock Dork readers can join for only $99 a year! Check out Stock Advisor today!
Should I Buy Cruise Line Stocks?
Investors looking to take on a little risk for significant returns should consider purchasing some of these cruise stocks.
That said, investors need to understand that, although ships are starting to sail again, the future of cruising is still uncertain.
It may take some more time before consumers are comfortable traveling and going on cruises.
The international economy, hotels, airlines, and cruises all hope to see market performance closer to what they would have seen before the pandemic began.
Best Cruise Ship Stocks: Final Thoughts
2021 brings new hope and opportunities as cruise ships finally resume travel.
Many companies are still at a low after being shut down for so long, making now a great time to invest.
As things begin to return to normal, all signs point to cruise stocks seeing healthy increases.
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