Billionaire Jim Simons’ RenTech’s 10 Small-Cap Stock Picks with Huge Upside Potential

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

Renaissance Technologies’ Stake Value: $143,502,154

Upside Potential as of May 1: 63.69%

Market Capitalization as of May 1: $7.193 Billion

Number of Hedge Fund Holders: 58

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a cruise company that operates several brands, including its main Norwegian Cruise Line and luxury brands like Regent Seven Seas Cruises and Oceania Cruises. It provides services such as on-board lodging, dining, entertainment, and shore excursions.

In Q1 2025, Norwegian Cruise Line (NYSE:NCLH) reported mixed financial results. Total revenue reached $2.1 billion, down about 3% compared to Q1 2024. The company attributed the decline to two factors: a 2% decline in capacity days related to increased dry-dock activities and a strategic reduction in passenger air participation rates. The cruise line posted a GAAP net loss of $40.3 million or ($0.09) per share, though its Adjusted EBITDA of $453 million exceeded guidance.

The company is investing heavily in fleet enhancements and new experiences to drive consumer demand. On April 28, 2025, the Norwegian Cruise Line subsidiary welcomed Norwegian Aqua, the first vessel in its cutting-edge Prima Plus Class. Meanwhile, on April 30, 2025, the Oceania Cruises subsidiary announced a sweeping revamp of its onboard entertainment program across its eight small luxury ships fleet. It introduced a new celebratory evening called “The Blue Horizons Party,” along with original production shows and immersive wellness experiences. On April 21, 2025, Loop Capital Markets analyst Laura Champine upgraded the stock from Hold to Buy while maintaining a $25 price target.