Small Ship Line #1: Crystal Yacht Cruises
In early 2015, Crystal brought a yacht into its fleet for the first time, and following its success, the cruise line decided to custom-build a polar-class expedition megayacht. The ultra-luxe Crystal Endeavor, which sails to remote locations like the Arctic and the Antarctic, as well as urban ports around the world, launched in 2021, and can carry up to 200 passengers.
Mega Ship Line #: Msc Cruises
Though MSC is headquartered in landlocked Switzerland, this cruise line has mastered the art of mega-ships, building five of the 15 largest in the world: MSC Grandiosa, MSC Bellissima, MSC Meraviglia,MSC Virtuosa, and MSC Seashore. Each can hold between 5,300 and 6,300 passengers at maximum capacity. MSC Seashore, a New York Citythemed ship, is the newest of the five, setting sail in November 2021. It’s the longest vessel in the fleet at 1,100 feet, allowing for more than 140,000 square feet of outdoor space, plus 7,500 square feet of dedicated space for kids, including the Pirates Cove Aquapark. MSC has some plans for mega-growth, too: it has four World-class mega-ships in the pipeline, each with a capacity between 5,800 and 6,850 passengers.
Medium Ship Line #: Cunard
While Cunards Queen Mary 2 fits more than 2,600 passengersand a number of cats and dogson board, her sister ships, Queen Elizabeth and Queen Victoria only have a capacity of about 2,000 passengers. Though theyre quite similar in layout, the QE and the QV differ in design. Both nod to the historic ocean liners of the early 20th century, but the QE takes on a bolder Art Deco vibe, while the QV features more subdued yet equally elegant decor. Guests on board both ships are likely to partake in afternoon tea before donning a glamorous gown for dinner.
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Norwegian Cruise Line Holdings Ltd
Number of Hedge Fund Holders: 28
Norwegian Cruise Line Holdings Ltd. was founded in 1966 and is based in Miami, Florida. It is a cruise company offering its services in North America, Europe, the Asia-Pacific, and internationally. Norwegian Cruise Line Holdings Ltd. operates under the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It is one of the best cruise stocks to buy now.
On September 20, Truist analyst Patrick Scholes upgraded Norwegian Cruise Line Holdings Ltd. to Buy from Hold with a price target of $19, up from $18. The analyst stated that looking at big travel agencies specializing in cruises, as well as “big data” on future bookings and pricing, there has been a significant increase in booking volumes. The luxury segment has seen higher bookings by nearly 40%, and Norwegian Cruise Line Holdings Ltd. seems to be best positioned to capture this market strength, the analyst told investors.
According to Insider Monkeys data, 28 hedge funds reported owning stakes worth $287.2 million in Norwegian Cruise Line Holdings Ltd. , compared to 35 funds in the prior quarter worth $540 million. John W. Rogers Ariel Investments is the leading stakeholder of the company, with 6.40 million shares valued at $71.2 million.
In its Q4 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Norwegian Cruise Line Holdings Ltd. was one of them. Here is what the fund said:
Cruise Line Industry Performance
Though the cruise industry was hard hit in 2020 when the coronavirus pandemic caused travel restrictions, this segment has rebounded sharply since then. In recent years, global cruise industry revenue reached more than 27 billion U.S. dollars, and the U.S. market generated most of these earnings to take the crown as a world leader from Germany. In 2020, the U.S. was still the market leader, but revenue declined by roughly 12 billion U.S. dollars over the previous year.
From the above chart, it can be seen that when Corona-Virus came up and hit the worlds all sector with Cruise Industry, the revenue & earnings go down. But the good thing is that the companies are not bad in their business and before the covid-19 period, the industry was growing very well. That means whenever this situation will calm down, the cruise industry will grow again, and so will the stock price.
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Norwegian Cruise Line Drops A Drink Package
Norwegian charges the most for its drink packages and those prices have actually recently gone up. The cruise line offers the Unlimited Open Bar Package, which includes all drinks up to $15, now costs $109 per person per day . The Premium Plus Beverage Package, which includes pretty much every drink the cruise line serves, has climbed from $128 to $138 per person per day.
The cruise line did, however, have a cheaper alternative. It offered a “Corks and Caps” package for $65 per passenger per day which included beer and wine, but no hard liquor. The cruise line has not made any comment on the change, but it has taken the beer and wine drinks package off of its website.
Norwegian does bundle drink packages with some of its cruise fares as part of its “Free at Sea” deals.
River Ship Line #: Viking River Cruises
Parent company Viking Cruises has expanded feverishly in recent years, with more than 60 river ships and six ocean vessels in its fleet. Under Viking River Cruises, the company’s riverboats explore familiar waters like the Danube and Rhône in Europe, as well as faraway itineraries on the Volga in Russia, the Nile in Egypt, and the Mekong in Southeast Asia. Viking River Cruises also includes complimentary Wi-Fi and select shore excursions in its prices, and its Culture Curriculum offers experiential learning through events like regional wine tastings and menus that rotate seasonally.
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Cruise Stocks To Buy: Carnival
The latest increase in the share price is being driven by rising optimism that the Doral, Florida-based companys business will improve further this year as we put the global pandemic behind us for good. A December update from Carnival sounded a positive note to investors, with the company stating that its sales grew to 58% of pre-pandemic levels in the fourth quarter of 2021.
Carnival has said that it plans to have its entire fleet of more than 100 vessels in operation by this spring as it seeks to push its current volume past pre-pandemic levels and to new milestones. Carnival shares got a further boost after the company said just prior to the new year that it forecasts posting a profit in the second quarter of 2022, and that advanced bookings for the second half of 2022 and into 2023 are already at 2019 levels, before the pandemic devastated its operations.
Of course, any unexpected developments related to Covid-19 or new lockdown measures could derail Carnivals progress. But for now, it looks to be full steam ahead for the company.
The Walt Disney Company
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.
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When Savings Turns To Spending
When economies shut down around the world, some industries failed. An estimated 110,000 restaurants and bars closed in the U.S lots of them for good. Many of them received little to no relief from the Congressional stimulus packages. And the same went for cruise lines. Carnival took on an additional $4 billion in debt to try to get over the pandemic hump. Situations like this sent cruise stocks tumbling.
Unlike independent restaurants and bars, cruise lines had more options to withstand the loss of demand for their services. And now that they seem to have made it through the worst, the light at the end of the tunnel is starting to shine.
Weve already covered the fact that cruise liners have developed strong loyalty amongst passengers. Those who have cruised before will more likely than not be cruising again. And its more likely than ever that theyll have the money to do so when they can. And the when is finally upon us.
Norwegian Cruise Line Holdings asked federal health authorities to allow it to set sail from U.S. ports starting July 4, 2022. The company cited CDC guidance for allowing fully vaccinated passengers to travel due to the low risks involved.
But around the world, things are indeed starting to propel once again or at least many have offered hard dates as to when they will.
With some exceptions, Carnival has recently resumed many of its cruises. And now other major cruise liners are starting to do the same.
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.
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River Ship Line #: Vantage Deluxe World Cruises
The river cruise branch of tour operator Vantage Deluxe World Travel has several of its own ships, the majority of which sail in Europe. In fact, the vessels were some of the first river ships in Europe to have cabins designated for solo travelers. But in 2020, the company started operations in Egypt on its new m/s Nebu, which also has solo cabins. Providing its clients with even more options, Vantage also charters ships around the world for a variety of itineraries.
Large Ship Line #: P& o Cruises
The United Kingdoms premier cruise lineand the worlds oldest, having commenced passenger operations in 1837P& O sails Europe, North America, and the Caribbean with a crowd made up primarily of British nationals. As such, prepare for the ships amenities to have a British bent . Three of the fleets six current ships fall into the large category, while its two adults-only ships, MS Aurora and MS Arcadia, are medium-sized. P& O’s newest ship, MS Iona is a mega-ship, as will be her sister, MS Arvia, due to sail in 2022.
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Best Cruise Lines In The Caribbean
It’s a clean sweep for Disney in this category too. Disney has been named the top cruise line in the Caribbean for the past eight years, according to U.S. News & World Report.
Living up to its name, the Miami-based Celebrity Cruises partners with well-known names in the arts and entertainment industry. It’s newest ship, Celebrity Beyond, has Gwyneth Paltrow as its “wellbeing advisor” and a restaurant created by Michelin-starred chef Daniel Boulud, according to its website.
Also on this list: Regent Seven Seas Cruises , Holland America Line , Carnival Cruise Line , Norwegian Cruise Line , Oceania Cruises , Princess Cruises and MSC Cruises .
Large Ship Line #: Norwegian Cruise Line
Things escalated quickly for Norwegian: the cruise line jumped from medium-size ships to mega-ships practically overnight , with just three ships in its current fleet sized somewhere in between. But thats soon about to change. Norwegian currently has six ships on order as part of Project Leonardo, each of which will hold about 3,300 passengers. Its interesting to see a cruise line scale back from its mega-ships and opt for a more manageable size for such a large order. The first, Norwegian Prima, is expected to launch in 2022 some of its highlights include the fastest slides at sea , a three-level go-kart racetrack, and a three-story theater that transforms into a nightclub after the evening’s show.
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Do You Own Cruise Line Stocks You Could Get Onboard Perks
Many cruise fans choose to invest in cruise line stocks, either because they want to support their favorite brand or because they view it as a financially savvy investment. But did you know that owning shares in a cruise company could give you onboard perks each time you cruise?
The major U.S. publicly traded cruise companies, Carnival Corporation , Royal Caribbean Group and Norwegian Cruise Line Holdings all offer onboard credits ranging from $50 to $250 for those who own 100 shares or more of their stock.
Stock prices and any money you may or may not make from the investment are unpredictable. What is predictable are the perks. A small investment in a cruise company may pay off in more ways than you think, especially if you are a frequent cruiser.
This is not advice about making a financial investment. Before buying any cruise stocks, you should talk to your own adviser or broker, and do your own research. Any financial investment is at your own risk.
For more cruise news, reviews and tips, sign up for TPGs cruise newsletter.
Each cruise company has its own rules and nuances regarding the benefits of owning cruise line stocks. Heres how shareholder perks play out at the top three publicly traded cruise companies.
Lindblad Expeditions Holdings Inc
Number of Hedge Fund Holders: 11
Lindblad Expeditions Holdings, Inc. provides expedition cruising and adventure traveling opportunities. It has a fleet of nine owned expedition ships alongside five seasonal charter vessels operating under the Lindblad brand. The company ranks 7th on our list of the best cruise stocks to buy now.
In June, Lindblad Expeditions Holdings, Inc. revealed that the company’s CEO Dolf Berle, bought about 36,500 shares of common stock in May, worth about $636,000. Deutsche Bank also raised the stock’s price target from $14 to $16 this May. This March, Lindblad Expeditions Holdings, Inc. announced that they would be resuming operations in 2021, just in time for the voyage season in Alaska and Galápagos in June. The stock rose after the announcement. In the first quarter of 2021, the company’s EPS was -$0.66 versus estimates of -$0.55. Its revenue for the quarter was $1.78 million, beating estimates by $0.85 million. The stock has gained 3.21% in the past 6 months and 3.74% year to date.
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Cruise Stocks: The Walt Disney Company
The Walt Disney Company is a highly diversified entertainment company. The company operates Disney theme parks and resorts, distributes media and entertainment, and sells branded merchandise, books, and magazines through retail, online, and wholesale businesses. It has also set up a cruise line operation as its subsidiary.
Disney has a track record of delivering solid growth in revenues and profits. The companys Disney+ and other streaming services have gained significant consumer traction in the past couple of years.
With the economy normalizing and a pent-up demand for travel, the company plans to expand its cruise line business by adding three more ships this year.
The average analyst rating on the stock is a strong buy. The average price target is $140.09, representing an upside potential of 48.56% from the current price as of writing.
On the date of publication, Sakshi Agarwalla did not have any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Sakshi Agarwalla has more than eight years of experience writing equity research reports and preparing financial models for companies across various industries, as well as writing newsletters and financial articles. Recently, she assisted her Fund manager in executing trades, preparing weekly, monthly NAVs and writing newsletters. She has a postgraduate degree in finance and has completed CFA.
Medium Ship Line #: Hurtigruten
What started as a coastal ferry company in Norway in 1893 has expanded its operations to include expeditions to such destinations as Antarctica, Cape Verde, and Greenland. Of Hurtigruten’s 14-ship fleet, there are seven expedition vessels, five of which fit 500 to 1,000 passengers. The cruise line’s two newest ships, MS Roald Amundsen and MS Fridtjof Nansen, are hybrid-powered ships, demonstrating Hurtigruten’s dedication to sailing as cleanly as possible to protect the environment.
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Small Ship Line #: Regent Seven Seas Cruises
Sailing with only 490 guests, the Seven Seas Navigator takes its all-inclusive promise seriously, offering unlimited shore excursions, open bars with premium wines , unlimited Wi-Fi, and dining in specialty restaurants. The ship sails all over the world, from New Zealand to Dubai, on week-long to three-month-long itineraries.
New Report: The 8 Best Cruise Lines For The Money
If youre thinking about booking a cruise, doing so now may be beneficial for your wallet. Many major cruise lines are offering big discounts.
U.S. News & World Report recently released a ranking of the best cruise lines for your money. The publications says it ranked the cruise lines based on several factors including:
- Reputation among experts and travelers
- Itinerary affordability
Its that last bullet point that has us checking for cruise dates.
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