As April comes to an end, you may be surprised to see that cruise line stocks are among the most active stocks today. Why is this industry making waves on the stock market, might you ask? Well, this is likely thanks to the latest announcement from the U.S. Centers for Disease Control and Prevention (CDC). Through a letter to the cruise industry earlier this week, the CDC announced that cruises can operate this year. For starters, the mid-July time frame would allow for summer voyages which would appeal to eager cruisers right now. At the same time, investors could be eyeing the top cruise ship stocks as well.
On one hand, conventional cruise operators like Lindblad Expeditions (NASDAQ: LIND) would be caught in this tailwind now. On the other hand, even travel companies that facilitate cruising such as Expedia (NASDAQ: EXPE) would be viable plays. As it stands, both companies’ shares are looking at gains of over 130% in the past year. However you look at it, the cruise industry just received a major boost.
By and large, all this would add to the current momentum seen by the tourism industry overall. Besides, demand for cruises and other travel services would be at a high now. This could be the case seeing as consumers have been anchored for more than a year. Given all of this, would you be willing to invest in these top cruise line stocks in the stock market today?Top Cruise Line Stocks To Buy [Or Avoid] Now
- Carnival Corporation (NYSE: CCL)
- Royal Caribbean Cruises Limited (NYSE: RCL)
- Norwegian Cruise Line Holdings (NYSE: NCLH)
- Walt Disney Company (NYSE: DIS)
Carnival is a leisure travel company that has been in the limelight recently. In essence, the company is a cruise company and a provider of vacations to all cruise destinations throughout the world. It covers North America, Australia, Europe, and Asia. CCL stock currently trades at $27.74 as of 10:12 a.m. ET and has been up by over 30% year-to-date. Last week, the company announced that its Costa Cruises has unveiled its 2021 cruise vacations in the Mediterranean.Source: TD Ameritrade TOS
It has also been making huge plays ahead of reopening by July. To assure customer safety, the company will include enhanced health and safety procedures for all aspects of its cruise experience. This is crucial because as the world reopens, companies like Carnival must prioritize public health while restoring consumer confidence and driving global economic recovery in the travel and tourism industries. Also, Carnival announced last week that its Seabourn ultra-luxury cruise line has partnered with the government of Barbados to restart guest sailings. Given all these reopening plays by the company, will you consider buying CCL stock?Royal Caribbean Cruises Ltd
Royal Caribbean is a global cruise holding company that is based in Florida. It is the world’s second-largest cruise line operator, after Carnival Corporation. The company’s three cruise lines include Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. RCL stock currently trades at $86.09 as of 10:14 a.m. ET and has been up by over 75% in the last year. On Thursday, the company provided a crucial business update and reported its first-quarter financials.Source: TD Ameritrade TOS
Like Carnival, the company has been announcing new itineraries for this summer. In detail, it has 11 additional ships from the Caribbean and Europe in addition to the four ships already sailing. Impressively, the company has received a positive reaction to these announcements, highlighting the strong demand for cruising. These cruises are taking place with adjusted passenger capacity and the enhanced health protocols developed with government and health authorities, and guidance from the Healthy Sail Panel. With these exciting developments surrounding Royal Caribbean, will you consider adding RCL stock to your portfolio?
Read MoreNorwegian Cruise Line Holdings Ltd.
Norwegian is a cruise line that is the third-largest cruise line in the world. The company boasts a combined fleet of 28 ships with approximately 59,150 berths. Furthermore, these brands offer itineraries to more than 490 destinations worldwide. It also plans to introduce nine additional ships through 2027. NCLH stock currently trades at $30.52 as of 10:16 a.m. ET and has seen over a 25% increase year-to-date. On Wednesday, the company unveiled the next phase of its long-awaited plan to resume cruising outside of the U.S. this summer.Source: TD Ameritrade TOS
The company’s Oceania Cruises will resume operations with sailings to Scandinavia and Western Europe beginning in August and Regent Seven Seas Cruises will restart from the U.K. in September. All initial voyages will operate with fully vaccinated guests and crew in addition to the company’s robust, multi-layered SailSAFE health and safety program. Among the key features in this program includes universal coronavirus testing before embarkation. With that in mind, will you consider buying NCLH stock?
[Read More] 4 Retail Stocks To Watch Before May 2021Walt Disney Company
Last but not least, we have the Walt Disney Company. To begin with, yes, most would not immediately think of Disney as a cruise ship stock. Given its explosive growth in the streaming industry recently, I can understand. However, the Disney Cruise Line is another stream of revenue for Disney. With the CDC’s latest announcement, the company would be receiving another boost on the tourism front. This coupled with Disney’s theme parks opening could make for the perfect storm for the company. Ideally, we could see a scenario where Disney is firing on all cylinders in a post-pandemic world. Because of this, could investors continue to drive DIS stock’s prices up?Source: TD Ameritrade TOS
For one thing, Disney has been hard at work preparing for the continuation of cruise voyages. During a virtual event yesterday, Disney unveiled its newest cruise ship, the Disney Wish. In particular, the Disney Wish marks the fifth ship in the Disney Cruise Line fleet. On this ship, Disney is offering experiences based on the legendary Star Wars and Marvel IPs from its portfolio. According to Disney, voyages to the Bahamas and Castaway Cay will be open for booking on May 27. Yet again, the company appears to be making the most of its massive media portfolio. Time will tell if Disney can appeal to travel-starved consumers. In the meantime, would you consider DIS stock a buy?