The pullbacks in some of the top cruise stocks are all buying opportunities.
Look at Royal Caribbean (NYSE:RCL), for example.
Even with strong booking demand and earnings growth, the stock dropped from about $173 to a recent low of about $152, where it’s now oversold and pivoting higher. Not only did it just catch support at its 50-day moving average, but it’s also excessively oversold on RSI and Williams’ %R. While expecting RCL to resume its uptrend, I’d buy the temporary weakness.
From its last traded price of $157, I’m looking for an initial retest of $173.
Helping, RCL just raised its adjusted earnings per share outlook to a new range of $11.35 to $11.45 from an older range of $10.70 to $10.90. The company even reinstated a 40-cent dividend, payable on Oct. 11. That, coupled with explosive demand makes Royal Caribbean a strong buy at current prices.
However, it’s not just RCL that could rally to higher highs. Here are three more cruise stocks that could see plenty of smooth sailing ahead, too.
Carnival (CCL)
Oversold at $17.12, Carnival (NYSE:CCL) is another one of the top cruise stocks to buy.
For one, the company managed to beat EPS estimates in each of its last seven quarters. Two, in its most recent earnings report, company bookings are at record highs this year and are significantly exceeding 2023 numbers. Three, CCL is already touting record bookings for 2025 as well.
Even better, the company saw customer deposits hit a record high of $8.3 billion in the second quarter, which was $1.1 billion higher than a prior record high.
Helping, over the last few days, JPMorgan (NYSE:JPM) raised its price target on CCL to $25 with a Buy rating. Analysts at Truist also raised their price target to $25 with a hold rating. In total, 14 analysts rate CCL a buy. Two have a Hold rating, and one has a Sell rating, which makes no sense. The average price target on CCL is currently $21.72.
Norwegian Cruise Line (NCLH)
Oversold at its 100-day moving average, Norwegian Cruise Line (NYSE:NCLH) is also a buy.
Just this morning, the company posted beat top and bottom line estimates. EPS of 40 cents beat by 6 cents. Revenue of $2.4 billion, up 8.6% year-over-year, beat by $20 million. Adjusted EBITDA jumped 14% to $587.7 million.
NCLH also raised its full-year adjusted net income guidance by $60 million to about $790 million from $730 million. It also increased its adjusted EPS guidance to $1.53 from $1.42.
Better, according to CEO Harry Sommer, “The momentum we are garnering from strong yield growth, disciplined cost management and the initiatives that comprise our Charting the Course strategy further bolsters our confidence in achieving our previously announced 2026 financial and sustainability targets.”
I’d also use recent weakness as a buying opportunity with NCLH, too. With patience, I’d like to see the stock rally back to $21.50 initially.
Defiance Hotel, Airline and Cruise ETF (CRUZ)
Or, if you’d rather diversify at a lower cost, there’s the exchange-traded fund Defiance Hotel, Airline, and Cruise (NYSEARCA:CRUZ). After catching strong support at $21 dating back to February, it’s also a buy, as it just starts to pivot higher. Last trading at $21.31, I’d like to see it initially retest $22.40.
With an expense ratio of 0.45%, the CRUZ ETF holds 63 top cruise, hotel and airline stocks, including Hilton Worldwide (NYSE:HLT), Marriott (NASDAQ:MAR), Royal Caribbean, Carnival, Delta Air Lines (NYSE:DAL) and Southwest Airlines (NYSE:LUV) — to name a few of the top holdings. Not only do you get exposure to top cruise stocks but also some of the best hotel and airline stocks — all for less than $22 a share at the moment.
With the CRUZ ETF, I’d use the recent, temporary weakness as a buying opportunity.
On the date of publication, Ian Cooper did not have (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
