The summer travel boom has extended to the high seas, and several cruise stocks to buy now are sailing higher on investors’ radars. 

After a slow post-pandemic recovery, travel numbers have peaked at an all-time high. The Transportation Security Administration (TSA) screened a record 3 million passengers in a single day earlier this month. This revival in travel demand is felt across the board, with cruise companies experiencing a strong comeback this year. 

The number of cruise line passengers jumped from 20.4 million to 31.7 million in 2023. Going into 2024, this number is expected to reach 35.7 million and 40 million by 2027. In other words, the future of cruises remains bright. 

Hence, it is unsurprising that companies leading the charge are riding the wave to higher gains. For investors, this presents a great opportunity to get behind the top names in the sector. Moreover, with several stocks providing strong guidance, this is the perfect entry point for long-term gains. 

Norwegian Cruise Line Holdings (NCLH)

Norwegian Cruise Line (NYSE:NCLH) stands out from the crowd for its ability to cater to a wide range of cruise-goers. The cruise’s laidback freestyle culture has undoubtedly given the company an edge over its peers. However, while Norway hasn’t experienced the same gains as its peers, it remains a compelling long-term play.

Norwegian Cruise Line reported strong numbers in its first quarter, exceeding estimates across all key metrics. Revenue for the quarter came in at $2.2 billion, up 20% from the prior year. Total capacity also rose by 8%. The quarter’s success led the company to raise guidance, with full-year adjusted net income increasing to $680 million from a prior guidance of $635 million. Norwegian attributes its impressive results to an “unprecedented level of advanced ticket sales.”

While the baseline remains strong, NCLH’s slow uptick can be attributed to the lack of pricing power it once held. Regardless, the markets remain optimistic about its future performance, with analysts expressing bullish sentiments toward the stock. 

With strong guidance and positive macroeconomic conditions, NCLH is a good cruise stock to buy now for long-term returns. 

Royal Caribbean (RCL)

When we picture cruise vacations, we often think of Royal Caribbean’s (NYSE:RCL) high-sea escapades. These large vessels are complete with state-of-the-art amenities, including water slides, on-deck entertainment, and unlimited food. The company’s strong brand name and market position propelled it to the forefront of the cruise resurgence. The stock is up 68% in the past year, and signs point to greater upside ahead. 

The financials reflect this optimistic outlook. In the previous quarter, Royal Caribbean experienced strong momentum in bookings, leading to a $360 million net income. This was up from a loss of $48 million in the prior year. Based on the quarter’s performance, the company raised net yield expectations from 10.2% to 10.7% in Q2. For the full year, RCL expects to meet its trifecta of financial goals a year earlier than anticipated. 

Royal Caribbean is a major beneficiary of the revival of cruise vacations, making it one of the best cruise stocks to buy this month. The markets also remain optimistic about the stock’s performance, with several analysts expressing strong bullish sentiments towards RCL. 

Lindblad Expeditions Holdings (LIND)

Compared to its peers, Lindblad Expeditions (NASDAQ:LIND) is a smaller cruise stock that caters to a niche audience with specialized travel expeditions. Looking at the financials, revenue rose by 7% from the prior year to $153.6 million. Reservations for future travel also increased by 4% from 2023. However, the company issued a conservative outlook and a miss on EPS, dragging shares lower following earnings. 

Lindblad’s resurgence is arguably slower than its peers, but it can bank on its strategic partnerships to fuel its growth. In the last quarter, the company acquired Wineland Thompson Adventures to capitalize on the growing demand for adventure travel and safaris. Lindblad announced a marketing partnership with Disney’s (NYSE:DIS) National Geographic brand earlier this year. This deal is a major growth opportunity for Lindblad as it can leverage Disney’s vast sales channel to promote co-branded trips. 

Lindblad may not be cruising as high as its peers, but this is one of the best cruise stocks for investors seeking long-term gains.  

On the date of publication, Divya Premkumar 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.