11 Best Cruise Stocks To Buy Right Now

Published October 3, 2022 at 8:35 am EDT Updated August 31, 2026 at 8:38 pm EDT

In this article, we discuss 11 best cruise stocks to buy right now.

The cruise industry was one of the hardest hit tourism sectors amid the peak COVID years. However, CNN Travel expects a meaningfully smoother sail for cruises ahead. According to the top global cruise industry trade group, Cruise Lines International Association (CLIA), over 75% of its member ships have resumed their services, with almost all of its cruise ships expected to be sailing by late summer.

CLIA projects passenger metrics to surpass the pre-pandemic levels by the end of 2023. Similarly, according to Cruise Industry News, about 40 new ships are expected to hit the market this year, and more than 75 vessels have already been ordered through 2027. In late April, Colleen McDaniel, editor-in-chief of leading cruise review website Cruise Critic, said:

“We’re seeing shoppers and cruise bookings increase week after week, which is fantastic news for the industry.”

In November 2021, CLIA’s member cruise lines announced that they will become carbon neutral by 2050, in line with the United Nations’ net-zero global emissions goal. In order to achieve zero carbon, the cruise industry is gradually moving towards reducing emissions via shore-power connectivity, which means enabling ships to switch off their engines and plug in at ports. CLIA will have 174 ships with shore-power connectivity by 2027, however, only about 14 global ports presently provide the connectivity infrastructure. The demand in the cruise sector can potentially weather the inflationary headwinds, and investors who would like to get in on the action can buy stocks like Marriott International, Inc. (NASDAQ:MAR), Expedia Group, Inc. (NASDAQ:EXPE), and Booking Holdings Inc. (NASDAQ:BKNG).

Photo by Stephanie Klepacki on Unsplash

Our Methodology

We selected firms that operate in the cruise industry, picking stocks based on future growth potential, underlying business fundamentals, optimistic analyst coverage, and strong hedge fund sentiment.

We have arranged the list according to the hedge fund sentiment around the securities, which was assessed from Insider Monkey’s Q2 2022 database of about 900 elite hedge funds.

Best Cruise Stocks To Buy Right Now

11. Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND)

Number of Hedge Fund Holders: 11

Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) is a New York-based company that provides expedition cruising and land-based adventure travel experiences. The company offers fleet voyage ships and seasonal charter vessels under the Lindblad brand. Lindblad Expeditions Holdings, Inc.’s Q2 2022 revenue of $90.9 million climbed 495.7% year-over-year. There were robust reservations for future travel, and bookings for 2023 came in at 26% ahead of bookings for 2020.

On August 2, Craig-Hallum analyst Alex Fuhrman maintained a Buy recommendation on Lindblad Expeditions Holdings, Inc. but lowered the price target on the stock to $15 from $23 to factor in lower peer valuations. The analyst observed that Lindblad Expeditions Holdings, Inc. posted better than anticipated Q2 results, with better-than-expected revenue and a smaller-than-expected EBITDA loss.

According to Insider Monkey’s data, 11 hedge funds held stakes worth $87 million in Lindblad Expeditions Holdings, Inc. at the end of June 2022, compared to 10 funds in the prior quarter worth $104.3 million.

In addition to Marriott International, Inc., Expedia Group, Inc., and Booking Holdings Inc., Lindblad Expeditions Holdings, Inc. is one of the best cruise stocks to buy right now.

10. World Fuel Services Corporation (NASDAQ:INT)

Number of Hedge Fund Holders: 15

World Fuel Services Corporation (NASDAQ:INT) was incorporated in 1984 and is headquartered in Miami, Florida. The company engages in the distribution of fuel to the aviation, marine, and land transportation industries worldwide. Its Marine segment markets fuel, lubricants, and related products and services to commercial cruise lines. In Q2 2022, World Fuel Services Corporation posted market-beating results, with non-GAAP earnings per share of $0.41 and a revenue of $17.12 billion, outperforming estimates by $0.12 and $5.03 billion, respectively. Revenue in the second quarter gained 141.5% on a year-over-year basis.

On September 13, World Fuel Services Corporation declared a $0.14 per share quarterly dividend, a 17.0% increase from its prior dividend of $0.12. The dividend is payable on October 7, for shareholders of record on September 23. World Fuel Services Corporation’s dividend yield on September 30 came in at 2.35%.

In mid-May, Stifel analyst Benjamin Nolan upgraded World Fuel Services Corporation to Buy from Hold with an unchanged price target of $35. The shares are “generally cheap on any measure,” the analyst told investors in a research note. He said the company should be able to earn at least $2.50 per share next year with free cash flow exceeding $4.00 per share.

According to Insider Monkey’s data, 15 hedge funds were bullish on World Fuel Services Corporation at the end of Q2 2022, compared to 11 funds in the prior quarter. Ali Motamed’s Invenomic Capital Management is the leading position holder in the company, with 966,902 shares worth about $20 million.

Here is what Bernzott Capital Advisors has to say about World Fuel Services Corporation in its Q4 2020 investor letter:

“World Fuel Services (INT): A distributor of transportation fuels in aviation, land and marine markets, INT has unsurprisingly experienced weakness in 2020 but is set to return to mid-teens ROIC from current single digit levels, and the stock should appreciate as this occurs. The stock is an economic reopening beneficiary. Meanwhile, the company should see payoff from its inward focus in the recent couple years on integrating prior acquisitions, cost reduction, and “high-grading” its business, reducing low margin activities. Its balance sheet is its strongest in a decade, now in a net cash position after significant counter-cyclical free cash flow generation, and M&A activity may resume, a positive. The stock’s valuation is below historical levels.”

9. Agilysys, Inc. (NASDAQ:AGYS)

Number of Hedge Fund Holders: 16

Agilysys, Inc. (NASDAQ:AGYS) was founded in 1932 and is headquartered in Alpharetta, Georgia. The company provides hardware and software products and services to the hospitality industry in North America, Europe, the Asia Pacific, and India. It offers its solutions to resorts and cruise, hotel, corporate food service management, restaurant, education, gaming, and healthcare industries. Agilysys, Inc. reiterated its FY23 annual revenue guidance of $190 million to $195 million, whereas consensus stood at $192.84 million.

On September 16, Northland analyst Nehal Chokshi raised the price target on Agilysys, Inc. to $67 from $61 and maintained an Outperform rating on the shares. He lifted his long-term growth rate estimate to 20% from 18%, contending that Agilysys, Inc.’s rebranded marketing program is “showing early signs of driving bookings to the next level.”

According to Insider Monkey’s second quarter database, 16 hedge funds reported owning stakes in Agilysys, Inc., up from 13 funds in the earlier quarter. Michael Kaufman’s MAK Capital One is the leading position holder in the company, with roughly 4 million shares amounting close to $187 million.

8. Royal Caribbean Cruises Ltd. (NYSE:RCL)

Number of Hedge Fund Holders: 28

Royal Caribbean Cruises Ltd. (NYSE:RCL) is a Florida-based cruise company which operates cruises worldwide under the Royal Caribbean International, Celebrity Cruises, Azamara, and Silversea Cruises brands. On September 22, in its latest SEC filing, Royal Caribbean Cruises Ltd. revealed that bookings are notably exceeding 2019 levels, indicating strong demand patterns. The company expects bookings in 2023 to rise at higher rates to “historical ranges”. Royal Caribbean Cruises Ltd. is one of the best cruise stocks to invest in.

On September 19, Stifel analyst Steven Wieczynski raised the price target on Royal Caribbean Cruises Ltd. to $70 from $60 and reiterated a Buy rating on the shares. The analyst noted that bookings have significantly accelerated since Labor Day as COVID restrictions were lifted, with cancellation rates also normalizing. He feels “comfortable enough” to meaningfully “raise” his 2023/2024 EBITDA estimates based on ongoing strength in bookings and pricing trends.

According to Insider Monkey’s Q2 data, 28 hedge funds were long Royal Caribbean Cruises Ltd., compared to 36 funds in the last quarter. John W. Rogers’ Ariel Investments is the largest stakeholder of the company, with 2.4 million shares worth $85.3 million.

7. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)

Number of Hedge Fund Holders: 28

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) was founded in 1966 and is based in Miami, Florida. It is a cruise company offering its services in North America, Europe, the Asia-Pacific, and internationally. Norwegian Cruise Line Holdings Ltd. operates under the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It is one of the best cruise stocks to buy now.

On September 20, Truist analyst Patrick Scholes upgraded Norwegian Cruise Line Holdings Ltd. to Buy from Hold with a price target of $19, up from $18. The analyst stated that looking at big travel agencies specializing in cruises, as well as “big data” on future bookings and pricing, there has been a significant increase in booking volumes. The luxury segment has seen higher bookings by nearly 40%, and Norwegian Cruise Line Holdings Ltd. seems to be best positioned to capture this market strength, the analyst told investors.

According to Insider Monkey’s data, 28 hedge funds reported owning stakes worth $287.2 million in Norwegian Cruise Line Holdings Ltd., compared to 35 funds in the prior quarter worth $540 million. John W. Rogers’ Ariel Investments is the leading stakeholder of the company, with 6.40 million shares valued at $71.2 million.

In its Q4 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Norwegian Cruise Line Holdings Ltd. was one of them. Here is what the fund said:

“Norwegian Cruise Line Holdings Ltd (NCLH) continued to get hit from worsening headlines in relation to the Omicron variant. The stock declined 21.5% during the quarter following worse-than-expected 3Q results. The company reported revenues of $153M below consensus of $247M with EPS coming in at -$2.17 versus expectations for -$2.04. The company reported that 40% of its capacity was operating by the end of 3Q and they expect 75% to be operating by the end of 2021 with the full fleet back up and running by April 1, 2022. They also highlighted that they expect to be operating cash flow positive in late 1Q22 and profitable for the second half of 2022. The company announced a refinancing transaction, issuing $1Bn of new 1.125% exchangeable notes due 2027 and raising another $1.1Bn through the sale of 46.8M new shares at $23.64. Proceeds are being used to redeem up to $1.215Bn of debt with a blended interest rate of 8.1%, implying annual interest savings of $88M” (…read more)

6. Sabre Corporation (NASDAQ:SABR)

Number of Hedge Fund Holders: 38

Sabre Corporation (NASDAQ:SABR) is a Texas-based company that provides software and technology solutions for the travel industry worldwide. Sabre Corporation’s Travel Solutions segment operates as a business-to-business travel marketplace that offers inventory, prices, and availability from multiple travel companies, including airlines, hotels, car rental brands, rail carriers, cruise lines, and tour operators. Sabre Corporation beat estimates for earnings and revenue in Q2 2022, and ended the quarter with a cash balance of $1.0 billion.

On September 28, Redburn analyst James Goodall initiated coverage of Sabre Corporation with a Buy rating. Sabre Corporation’s turnaround story is underpinned by technology shift, said the analyst, who contended that his estimates are “slightly below” consensus for this year and next, but “well ahead” from FY24.

According to Insider Monkey’s Q2 data, 38 hedge funds were bullish on Sabre Corporation, with combined stakes amounting to $435 million. Terry Smith’s Fundsmith LLP is the leading stakeholder of the company, with 22.4 million shares worth $131 million.

Like Marriott International, Inc., Expedia Group, Inc., and Booking Holdings Inc., elite hedge funds are piling into Sabre Corporation for exposure to the cruise industry.

5. Marriott International, Inc. (NASDAQ:MAR)

Number of Hedge Fund Holders: 46

Marriott International, Inc. is an American multinational company that operates and franchises hotel, residential, and timeshare properties. Marriott International, Inc. offers cruise and vacation deals to its guests, who can also redeem loyalty points to win cruise deals. On August 4, Marriott International, Inc. declared a $0.30 per share quarterly dividend, in line with previous. The dividend was paid to shareholders on September 30. Marriott International, Inc. is one of the best cruise stocks to buy now.

On September 15, Berenberg analyst Stuart Gordon upgraded Marriott International, Inc. to Buy from Hold with a price target of $185, up from $165. The analyst said the fast recovery in lodging has yet to be reflected in the shares. “Even allowing for the threat of a recession moving into 2023, the shape of the recovery means that we expect strong RevPAR increases in 2023 across the sector,” the analyst told investors in a research note.

According to Insider Monkey’s data, 46 hedge funds were bullish on Marriott International, Inc. at the end of June 2022, compared to 52 funds in the earlier quarter. Boykin Curry’s Eagle Capital Management is the leading position holder in the company, with 8.81 million shares worth $1.2 billion.

Here is what Aristotle Capital Management Small Cap Equity has to say about Marriott International Inc. in its Q1 2022 investor letter:

“Marriott International outperformed in the first quarter following a better-than-expected earnings report for the company’s fourth quarter of 2021. During the pandemic, the company reduced expenses which improved operating leverage as revenue recovers. Expectations for travel in 2022 have improved as COVID cases have declined. The company has a strong pipeline of new hotels coming into the Marriott system. There are some indications that business-related travel is starting to recover.”

4. Airbnb, Inc. (NASDAQ:ABNB)

Number of Hedge Fund Holders: 57

Airbnb, Inc. (NASDAQ:ABNB) is a California-based company that operates an online marketplace delivering lodging and travel experiences. Airbnb, Inc. offers cruise bookings online as well. The company had its most profitable Q2 ever, with a net income of $379 million. Airbnb, Inc. also announced a $2 billion share repurchase program. The management expects a Q3 revenue between $2.78 billion and $2.88 billion, versus a consensus revenue estimate of $2.78 billion.

On September 23, Tigress Financial analyst Ivan Feinseth maintained a Buy recommendation on Airbnb, Inc. but lowered the price target on the shares to $160 from $214. As travel demand shrinks from peak levels, the analyst sees a short-term re-rating of valuation, but argued that Airbnb, Inc.’s robust brand equity and “industry-leading status as the alternative lodging provider remains intact.” Airbnb, Inc. will continue to benefit from travel trends that favor its unique travel offerings, the analyst added.

According to Insider Monkey’s data, 57 hedge funds were bullish on Airbnb, Inc. at the end of June 2022, compared to 66 funds in the earlier quarter. Jim Simons’ Renaissance Technologies is the largest position holder in the company, with 5.60 million shares worth $499 million.

Here is what Brick By Brick Capital has to say about Airbnb, Inc. in its Q2 2022 investor letter:

“What is millennial tech?

It is a term I have coined to describe the type of companies I research. It is a disruptive technology that is changing the status quo of a given industry. For example, Airbnb with the lodging industry. This definition casts a wide net in terms of what sectors I look at, but it is very specific in terms of what type of companies I look at. I also believe focusing on these companies gives me an inherent edge over Wall St. as they are often older and disconnected from what is truly innovative.

Small-to-mid cap companies

This refers to the size of the underlying company and specifically companies whose market capitalization are under $10 billion. Now $10 billion is a huge number, but for example Airbnb has a $74 billion market cap.

These small to mid-cap companies are often under-followed by Wall St. and therefore lead to opportunities to make money. This is because the lack of coverage creates fundamental misunderstandings about the businesses, which then creates a divergence between the stock price and underlying business prospects. Also, many investment managers cannot own these smaller stocks due to their own mandates, which I feel gives me an inherent edge as there are less eyeballs on the name and therefore information gaps that I can uncover.

Many assume there is a multitude of factors that make stocks go up or down when in reality it all boils down to one singular thing.”

3. Hilton Worldwide Holdings Inc. (NYSE:HLT)

Number of Hedge Fund Holders: 60

Hilton Worldwide Holdings Inc. (NYSE:HLT) is an American hospitality company that owns, leases, manages, and franchises hotels and resorts. Hilton Worldwide Holdings Inc. also provides cruise travel to its customers. On September 19, the company revealed that it had signed an agreement to develop living facilities for astronauts aboard the Voyager Starlab.

On September 15, Berenberg analyst Stuart Gordon upgraded Hilton Worldwide Holdings Inc. to Buy from Hold with a price target of $152, up from $140. The analyst said the rapid recovery in lodging has yet to be factored into the shares. He now has Buy ratings on all hotel operators under his coverage.

Among the hedge funds tracked by Insider Monkey, Hilton Worldwide Holdings Inc. was part of 60 public stock portfolios at the end of June 2022, compared to 52 funds in the prior quarter. Bill Ackman’s Pershing Square is the leading stakeholder of the company, with 9.90 million shares worth $1.10 billion.

Here is what Pershing Square Holdings specifically said about Hilton Worldwide Holdings Inc. in its Q2 2022 investor letter:

“Hilton Worldwide Holdings Inc. is a high-quality, asset-light, high-margin business with significant long-term growth potential, led by a superb management team. The unforeseen arrival of the COVID-19 pandemic catalyzed a rapid and near-complete standstill in global travel, with RevPAR (the industry metric for same-store sales at a given hotel) down roughly 90% at the nadir of the pandemic. We increased our investment in Hilton during the pandemic as we believed the economic dislocation from COVID-19 would prove to be transient and that industry projections regarding the timeline for recovery were too pessimistic.

From the moment the pandemic began, Hilton’s management team took decisive actions to ensure the company not only managed through what it knew would be a challenging period, but also positioned the company to generate improved margins, cash flows, and investment returns once the business recovered. In hindsight, Hilton’s experience with COVID-19 – the 100-year proverbial flood – affirmed the company’s unique high-quality, asset light, high-margin business model, and reinforced our belief that Hilton deserves a premium valuation.

While Hilton entered 2022 impacted by the Omicron variant, results have vastly improved throughout the year as COVID-19 has evolved towards a more endemic virus, and consumer behavior has adapted accordingly. In recent months, Hilton’s system-wide RevPAR has surpassed 2019 levels and continues to improve. Recent strength has been led by domestic leisure travel occasions as consumer spending continues to shift from goods to services. …” (Click here to read the full text)

2. Expedia Group, Inc. (NASDAQ:EXPE)

Number of Hedge Fund Holders: 80

Expedia Group, Inc. is a Seattle-based online travel company. In addition to providing lodging and travel experiences, Expedia Cruise offers advice for travelers booking cruises. The company posted record-breaking numbers for the second quarter of 2022, and the stock got a boost from higher bookings and revenue. Expedia Group, Inc. is one of the best cruise stocks to buy right now.

On September 12, DA Davidson analyst Tom White maintained a Neutral rating on Expedia Group, Inc. and lowered the price target on the shares to $122 from $195. The analyst updated his model to reflect the recent recovery in global travel demand, which he believes might be impacted by broader macro and inflation-related slowdowns in travel spending starting next year.

According to Insider Monkey’s data, 80 hedge funds were long Expedia Group, Inc. at the end of Q2 2022, compared to 88 funds in the last quarter. Daniel Sundheim’s D1 Capital Partners is the leading stakeholder of the company, with 6.15 million shares worth $583.6 million.

Here is what Carillon Tower Advisers specifically said about Expedia Group, Inc. in its second quarter 2022 investor letter:

“Online travel company Expedia Group, Inc. underperformed after posting quarterly results that were slightly below market expectations. The company’s results were negatively impacted by the omicron variant early on in the quarter and then later the war in Ukraine. Despite this, positive forward commentary from the company noted a recovery in booking trends that point toward these issues being temporary.”

1. Booking Holdings Inc. (NASDAQ:BKNG)

Number of Hedge Fund Holders: 93

Booking Holdings Inc. was founded in 1997 and is headquartered in Norwalk, Connecticut. The company provides travel and restaurant reservations worldwide. Booking Holdings Inc. also offers cruise bookings online. The company projects “record revenue” in Q3 2022 on the back of strong travel demand. Booking Holdings Inc. is one of the best cruise stocks to buy right now.

Investment Advisory DA Davidson reiterated a Neutral on Booking Holdings Inc. and lowered the price target on Booking Holdings Inc. to $2,150 from $2,300. Analyst Tom White issued the ratings update on September 12.

According to the second quarter database of Insider Monkey, 93 hedge funds held stakes worth $5.4 billion in Booking Holdings Inc., compared to 99 funds in the last quarter. Harris Associates is the leading position holder in the company, with 616,383 shares worth over $1 billion.

Here is what Matrix Asset Advisors specifically said about Booking Holdings Inc. in its Q2 2022 investor letter:

“We started a new position in Booking Holdings Inc. a leading global online travel company. Bookings has the largest market share in the online travel agency business through its Bookings.com, Priceline.com, Agoda, Kayak, OpenTable, Rentalcars, and Etraveli franchises. Before Covid, BKNG was growing at a double-digit rate with earnings reaching $102 per share in 2019. The company’s business was hit hard during Covid but remained profitable. As global economies emerge from Covid, the travel business and Bookings have recovered quickly but the stock has been a casualty of the NASDAQ sell-off. The company has a strong balance sheet and shareholder-oriented management. We think the share price decline provided a good entry point for this high-quality company in an industry with strong growth prospects.”

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