Cruise Stocks: CDC Alert Brings Smooth Sailing for RCL, CCL, NCLH Stocks

Today, cruise stocks are seeing positive momentum as this sector rebounds in a big way. Royal Caribbean (NYSE:RCL), Carnival (NYSE:CCL) and Norwegian (NYSE:NCLH) each reported gains between 2.4% and 5% as of early afternoon trading.

cruise stocks docked cruise ships
Source: Kokoulina /

For investors in cruise stocks, 2021 has been a bit of a rocky ride. Many investors may have gotten sea sick holding onto these stocks, which ebbed and flowed in impressive fashion. A series of regulatory headwinds followed hopes that cruises would finally open up, with a return to normalcy in the cards for 2022.

Today, it appears investors’ wishes are closer to becoming reality. Let’s dive into the key catalyst investors in cruise stocks are watching today.

Cruise Stocks Surge Higher as CDC Guidance Becomes Optional

According to recent reports, investors in cruise stocks appear to finally have something to look forward to. The Centers for Disease Control (CDC) Framework for Conditional Sailing Order will expire on Saturday. This order mandated certain CDC protocols be put in place by cruise lines to ensure the safety of passengers and speed up a return for cruise lines. This sector, battered by the pandemic, has welcomed the return to sailing. However, these restrictions have been onerous, limiting the number of passengers per vessel and increasing costs, such as staffing, to meet these requirements.

The expiration of this order means that cruise lines can effectively choose whether they’ll follow the CDC guidelines voluntarily or not. Accordingly, it remains to be seen what the ultimate impact will be for cruise-goers. However, the fact that this CDC order has become CDC guidance is generally being perceived by investors as bullish today.

Some analysts have already come out, calling 2022 the “year of the cruise.” This removal of mandated restrictions certainly points in the right direction. Thus, investors hoping for a return to profitability in this sector now have a realistic path to the green. That’s good for cruise stocks and the sector as a whole.

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 Publishing Guidelines.

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