Cruise bookings are hitting record highs, creating big opportunity for some of the top cruise stocks to buy now. In fact, according to Reuters, travelers have been booking 2024 cruises at “greater volumes” than before the pandemic. Plus, about 35.7 million vacationers are expected to cruise this year – up from 31.5 million in 2023.
“Travel demand is off to a strong start, which means availability will continue to shrink in the next couple of months,” said Debbie Haas, vice president of travel for AAA. “So, if you want a specific itinerary, ship or cabin type, act fast or you’ll have to start planning for next year.”
Goldman Sachs also just issued buy ratings on Royal Carribean (NYSE:RCL), Carnival (NYSE:CCL), and Norwegian Cruise Lines (NYSE:NCLH).
“The firm highlights four key factors expected to drive multi-year pricing tailwinds: a favorable supply/demand setup for cruise operators, the positive impact of new ship launches and fleet upgrades, advancements in revenue management reducing the need for discounting, and future land investments enhancing overall value,” noted Business Insider.
That being said, cruise stocks to buy should have smooth sailing ahead, including:
Royal Caribbean (RCL)
After topping out at around $140 a share, Royal Caribbean (NYSE: RCL) recently pulled back to $128.82, catching support at its 50-day moving average. From here, I’d like to see RCL retest $140 again initially. Helping, Goldman Sachs recently upgraded RCL to a buy rating. Analysts over at Macquarie raised their price target to $160 from $145. Even analysts at Barclays just raised their price target on RCL to $154 from $150, with an overweight rating. Truist also raised their price target on the cruise stock to $151 with a buy rating.
Royal Caribbean also just raised its annual adjusted earnings per share to a new range of $9.90 to $10.10 for a prior range of $9.50 to $9.70. Analysts were only looking for $9.77. “Bookings have been significantly higher than during the same period last year, with the back half of the year up by more than the front half,” the company added.
While the stock is slightly overbought at an all-time high, it could push even higher with demand showing no signs of slowing.
Carnival (CCL)
Another one of the top cruise stocks to buy is Carnival (NYSE: CCL).
After a recent pullback to $14.33, I’d use weakness as an opportunity with Carnival. Not only is its sitting at double-bottom support dating back to late November, it’s technically over-extended on RSI, MACD, and Williams’ %R. From its current price, I’d like to see Carnival initially retest resistance at around $17.68.
Even Barron’s just noted, “Carnival has hit some rough waters, but its recent post-earnings selloff looks like a great opportunity to book a cruise on its stock at a discount.” Even Tigress Financial just raised its price targeton CCL to $25 with a buy rating. All thanks to positive booking trends, and stronger consumer demand for cruises. JPMorgan also raised its price target to $23 with an overweight rating.
Industry improvements, and stronger bookings make Carnival a strong buy, especially on the most recent, unsustainable dip.
Norwegian Cruise Line (NCLH)
There’s also Norwegian Cruise Line (NYSE: NCLH), another one of the top cruise stocks to buy on the recent dip. Last trading at $17.75, NCLH is oversold on RSI, MACD, and Williams’ %R. From here, I’d like to see the stock initially retest resistance at around $21.73.
Plus, with growing demand, the company just ordered eight new ships, which is the biggest order in company history. “We expect these strategic investments will secure our growth trajectory, significantly boost our earnings profile, and enhance shareholder value well into the future,” added Chief Financial Officer Mark Kempa.
Earnings have been solid here, too. For fiscal year 2023, the company posted a 32% jump in revenue, as compared to 2019. Revenue per passenger cruise day was up 17% from 2019. In addition, advance ticket sales at the close of 2023 were up 56% from 2019 to $3.2 billion. All of those numbers are only expected to increase from here, with much stronger demand.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
