In this article we discuss the 5 best cruise stocks to buy now. If you want to read our detailed analysis of these companies, go directly to the 10 Best Cruise Stocks to Buy Now.
5. Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
Number of Hedge Fund Holders: 34
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) is a cruise company operating in the US and internationally. The company operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It ranks 5th on our list of the best cruise stocks to buy now.
In June, JP Morgan hiked up its price target for Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) from $35 to $38, while retaining its Overweight rating on the stock. This May, Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) announced that it would be resuming cruises to Alaska in August, while on June 7th, it also unveiled its US voyage resumption plans by announcing that 23 out of 28 ships across three brands would begin their voyages in July, phasing through early 2022 to resume voyages from New York, Los Angeles, Port Canaveral, and Miami. In the first quarter of 2021, Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) had EPS of -$2.03, beating estimates by $0.03. Its revenue was $3.1 million for the quarter. The stock has gained 25.96% in the past 6 months and 30.47% year to date.
By the end of the first quarter of 2021, 34 hedge funds out of the 866 tracked by Insider Monkey held stakes in Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH). Their total stake value was roughly $576 million. This is compared to 40 hedge fund holders with a total stake value of roughly $334 million in the previous quarter.
“In the squarely value camp, we bought Norwegian Cruise Lines in the fourth quarter. The sector has obviously been one of the hardest hit by COVID with business shut down. It should be one of the biggest beneficiaries of a normalization due to vaccines and infections helping us reach herd immunity at some point. As we got clarity around vaccine efficiency and potential timelines for disbursement, it enabled us to analyze the ability of cruise lines to make it through and what the potential balance sheet and earnings power might look like on the other side. We think Norwegian is worth somewhere in the $40s with a good ability to withstand the crisis. We think the recovery in travel is more likely to beat current recovery expectations than it is to fall short, setting up a nice risk-reward.”