Today, cruise stocks are all seeing some green. Although they are not performing as well as retail investor favorites on r/WallStreetBets, they are still worth watching.
Today’s move comes amid some pretty intriguing news for investors in the major cruise lines. Royal Caribbean (NYSE:RCL), Carnival (NYSE:CCL) and Norwegian Cruise Lines (NYSE:NCLH) are all up approximately 1% at the time of writing.
The cruise line industry has been hit perhaps the hardest by the pandemic. A complete shuttering of cruises due to concerns about the potential for outbreaks and international travel restrictions continues to put a lid on the revenue these cruise operators need to survive. Accordingly, investors have been watching the news closely to keep apace of anything impacting the reopening schedule.
It appears there are a number of bullish factors right now in the favor of such investors. Let’s take a look at one of the most recent catalysts taking these stocks higher.
Cruise Stocks Buoyed by Reopening Anticipation
On Friday, an announcement from Royal Caribbean highlighted the intention of the cruise giant to bring more ships online. According to the announcement, Royal Caribbean is looking to make six more ships available for cruises starting July 2. The company will require all passengers to be vaccinated prior to boarding. Additionally, all crew members will be required to be fully vaccinated.
Indeed, this announcement is very positive news for investors. The timing of the reopening of cruises is closely aligned to how investors value these stocks. Indeed, the sooner cruise lines are able to cover at least part of their high fixed expenses, the better the story will be for investors.
Right now, it appears summer cruises are on tap for cruisegoers. Indeed, the amount of pent-up demand for cruises should provide a nice near- to medium-term boost for these stocks. For investors looking to get in early on this trade, time may be running out. That is, assuming cruises resume as early as next month.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) 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.
