Billionaire Quants’ Two Sigma’s 10 Stock Picks with Huge Upside Potential

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

Two Sigma Advisors Stake Value: $197,843,116

Upside Potential as of May 8: 41.71%

Number of Hedge Fund Holders: 58

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is one of the world’s leading cruise ship operators. The company owns and manages a fleet of ships under three brand names: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. Each brand offers unique vacation experiences at sea.

In Q1 2025, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) earnings performance was what management described as “solid.” The company’s total revenue was $2.1 billion, though it posted a GAAP net loss of $40.3 million and earnings per share of ($0.09). However, the adjusted EBITDA reached $453 million, exceeded guidance, and adjusted EPS was $0.07. Despite some softening in its 12-month forward booking position, the company maintained its full-year 2025 adjusted EBITDA ($2.72 billion) and adjusted EPS ($0.01) guidance. Norwegian Cruise Line is expanding its fleet and offerings, introducing Norwegian Aqua, its first Prima Plus Class ship. It also refurbished Norwegian Bliss and Norwegian Breakaway and plans to enhance amenities at Great Stirrup Cay, its private island in the Bahamas.

On May 1, 2025, Loop Capital lowered its price target on Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) to $24 from $25 but maintained a Buy rating. The firm cited the 30% pullback in the stock year-to-date but expressed a favorable view of the entire cruise industry, suggesting that market share gains in the $2 trillion global vacation market would be even more likely in a recession.