In this article, we take a look at the ten best cruise stocks to buy right now. For more cruise stocks, see The 5 Best Cruise Stocks to Buy Right Now
One of the sectors hardest hit by the coronavirus pandemic has been the cruise industry. While other hospitality sectors such as hotels and restaurants have had time to prepare for the lockdown measures aimed at curbing the spread of the virus, cruise lines have simply been caught by surprise. This is because when the lockdowns began to be enforced, many cruise ships were midway through their voyage and were often stranded at sea due to port and port closures. In fact, a little-known fact about the pandemic is that one of the most widespread coronavirus outbreaks after China actually took place on a cruise ship. That ship was the Diamond Princess, which has over a thousand guest cabins and roughly the same number of crews.
The ill-fated ship began its voyage in late January and saw its passenger and crew numbers swell to nearly four thousand people. All of these were stranded in Tokyo harbor in Japan for nearly a month after initial reports emerged that two elderly passengers who disembarked the ship in Hong Kong had tested positive for the deadly virus. Matters took a serious turn when ten passengers aboard the Diamond Princess tested positive and the ship remained in limbo in Tokyo for 27 days, killing 14 passengers and 712 becoming infected.
However, the Diamond Princess wasn’t the only ship stuck due to the virus. According to a Guardian investigation, more than a hundred thousand cruise ship crew members were stranded at sea due to the virus, and many of them also died in the waters. In terms of economic costs, research by Russian marine universities shows that they are simply incredible. The researchers point out that between the third quarter of 2019 and the end of the first quarter of 2020, cruise line profits jumped from $30 billion to $30 billion Only $50 million for an almost total decimation. The pandemic also put several companies out of business as the total number of cruise lines dropped from 93 to 81 as the virus wreaked havoc around the world.
The pandemic has also shaken perceptions of the cruise industry. A natural language processing (NLP) analysis of industry-related tweets conducted by researchers in Spain showed that the majority of sentiment towards the industry was negative. The analysis found that widespread media coverage of the pandemic, coupled with previous beliefs that the cruise industry was a “petri dish” for disease, was a significant contributor to negative sentiment, and warned that sentiment may persist even if the pandemic calms down and life goes back to normal. As this raises the question of whether people would be willing to take a cruise after the ravages of the coronavirus pandemic, a quick search reveals that researchers from the UK and Australia are trying to answer those very questions. Through the use of a questionnaire by a research panel, they found that perceptions of risk associated with cruise travel were based on participants’ home country, with respondents from Australia having more negative attitudes compared to those from the UK. It also found that the coronavirus pandemic was unique in that it led to an experience-agnostic perception of future intention to cruise, in contrast to previous viruses where people with previous cruise experiences had more positive intentions.
With the worst behind us, a research report from Grand View Market Research estimates that the global cruise market was worth US$7.25 billion in 2021 and will have grown to US$7.67 billion in 2022. He adds that from 2022 it will grow at a compound annual growth rate (CAGR) of 11% from 2022 to 2028 to reach US$15 billion by the end of the forecast period. The research firm adds that the river cruise segment is set to grow the fastest within the market, outperforming the broader industry with growth of 13.3%. According to Grand View Market Research, the ocean cruise segment was the largest segment in the market in 2021 as it accounted for 80% of total revenue.
The industry is on track to recover from the coronavirus bloodbath, Royal Caribbean Cruises Ltd chief executive officer said. (NYSE:RCL), Mr. Jason Liberty, outlined during a recent conference call in February 2023:
We ended 2022 on a strong note and enter 2023 with the full strength of our operating and trading platforms. Our strong book position combined with the normalization of the booking window provides the visibility we need to resume annual forecasting, which aligns with our Trifecta program. I am incredibly grateful and proud of everyone at Royal Caribbean Group for executing so well our mission of providing the best vacation experiences responsibly and laying the foundation for our future growth. There’s been a lot of talk about the state of the consumer so I want to share what we’re seeing from daily interactions with consumers who are either booking their dream vacation or are currently sailing on one of our amazing ships.
Overall, we continue to see robust demand, financially healthy, highly engaged consumers excited to sail our brands. We continue to benefit from secular tailwinds as consumer preferences shift from goods to experiences. Entertainment and travel spending remain high and the labor market remains robust. Consumer sentiment has improved and banks have recently reported healthy savings and continued resilience in credit card spending. Our addressable market is larger than 2019 and continues to grow. Our products appeal to a wide spectrum of holidaymakers, from a short break to a perfect day to a luxurious world cruise. Cruises remain exceptionally attractive value for money. And like I’ve said in the past, it’s too attractive and we’re working very hard every day to bridge that gap.
Today we’re taking a look at some top cruise stocks, with the most notable picks being The Walt Disney Company (NYSE:DIS), Royal Caribbean Cruises Ltd. (NYSE:RCL) and Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) are ).
Our methodology
We looked at Insider Monkey’s database of 943 hedge funds for the fourth quarter of last year to filter out their top cruise stock picks. Care has been taken to ensure that the companies listed are either directly involved in the provision of cruises or related services.
The 10 best cruise stocks to buy right now
10. Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND)
Number of hedge fund investors in Q4 2022: 12
Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) is an American company headquartered in New York, New York. The company offers ship expeditions and other services that also include land expeditions to hundreds of locations around the world.
By the end of the fourth quarter of last year, 12 of the 943 hedge funds surveyed by Insider Monkey had bought shares in Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND).
In addition to Royal Caribbean Cruises Ltd. (NYSE:RCL), The Walt Disney Company (NYSE:DIS) and Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH), Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) is one of the top cruise line stocks.
9. World Fuel Services Corporation (NYSE:INT)
Number of hedge fund investors in Q4 2022: 14
World Fuel Services Corporation (NYSE:INT) is a marine fueling company at the heart of the cruise ship industry. It is responsible for fueling some of the largest cruise ship operators in the world. The company is based in Miami, Florida.
Fourteen of the 943 hedge funds included in Insider Monkey’s Q4 2022 survey had investments in the company’s shares. World Fuel Services Corporation’s (NYSE:INT) largest hedge fund investor is Ali Motamed’s Invenomic Capital Management, which owns 576,770 shares valued at $15.7 million.
8. Carnival Corporation & plc (NYSE:CUK)
Number of hedge fund investors in Q4 2022: 15
Carnival Corporation & plc (NYSE:CUK) is an American company headquartered in Miami, Florida. The company has nearly 100 ships in its cruise ship fleet, as well as a portfolio of hospitality properties and railcars. The company has offices in the UK, Australia and other countries. The company is one of the leading cruise lines in the world simply because of its extensive portfolio.
Insider Monkey’s Q4 2022 survey, which covered 943 hedge funds, found that 15 had acquired a stake in Carnival Corporation & plc (NYSE:CUK). The company’s top investor in our database is Robert Henry Lynch’s Aristeia Capital, which owns 11.2 million shares worth $81 million.
7. OneSpaWorld Holdings Limited (NASDAQ:OSW)
Number of hedge fund investors in Q4 2022: 16
OneSpaWorld Holdings Limited (NASDAQ:OSW) is focused on the provision of cruise ship services. As the name suggests, it offers spas on board ships, and its spas at sea include Celebrity Cruises, Oceania Cruises, and Amazon Cruises. The company is headquartered in Coral Gables, Florida.
By the fourth quarter of last year, 16 of the 943 hedge funds included in Insider Monkey’s study had bought the company’s stock. Of these, Ariel Investments of John W. Rogers is the largest shareholder in OneSpaWorld Holdings Limited (NASDAQ:OSW). It owns 16 million shares worth $149 million.
6. Agilysys, Inc. (NASDAQ:AGYS)
Number of hedge fund investors in Q4 2022: 19
Agilysys, Inc. (NASDAQ:AGYS) is a hardware and software company headquartered in Alpharetta, Georgia. The Company provides software for cruise lines that enables operators to perform remote check-ins, digital dinner reservations, and geolocated orders.
Of the 943 hedge funds surveyed by Insider Monkey, 19 had invested in Agilysys, Inc. (NASDAQ:AGYS) in the fourth quarter of 2022. The company’s largest hedge fund shareholder is Michael Kaufman’s MAK Capital One, which owns 3.7 million shares worth $300 million.
The Walt Disney Company (NYSE:DIS), Agilysys, Inc. (NASDAQ:AGYS), Royal Caribbean Cruises Ltd. (NYSE:RCL) and Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) are some of the best cruise stocks to get hedge funds into.
Click here to read on and see the 5 best cruise stocks to buy right now.
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Disclosure: None. The 10 best cruise stocks to buy right now was originally published on Insider Monkey.
