We recently compiled a list of the 7 High Growth Travel Services Stocks For 2025. In this article, we are going to take a look at where Viking Holdings Ltd (NYSE:VIK) stands against the other high growth travel services stocks.
The COVID-19 pandemic dealt a severe blow to both cruise and air travel industries. The mere thought of traveling in a closed compartment with people from all over the world scared travelers. Hospitality businesses like hotels and restaurants were less affected but still felt the heat.
Over the last year, the air travel industry has recovered to the pre-pandemic levels. Cruise passengers have grown in numbers for the second successive year in 2024, and are likely to post a record in 2025 as well.
On the back of this recovery, travel services stocks have performed well and are likely to continue performing well in the future. We looked at the top 7 travel services stocks by screening them based on sales growth since the pandemic.
To come up with the list of high-growth travel services stocks, we only considered stocks with a market cap of at least $10 billion and a 5-year sales growth rate of over 20%.
An aerial view of a luxurious cruise ship, surrounded by the blue horizon.
Viking Holdings Ltd (NYSE:VIK)
Viking Holdings Ltd operates in passenger transportation and offers passenger shipping and other forms of travel services. The company operates through two segments; Ocean and River. It has carved out a niche for itself by operating smaller cruises that can access ports that are otherwise unavailable to larger ships due to their location.
Things have gone well for the company with this approach. However, Royal Caribbean Cruises (RCL) recent announcement of launching Celebrity Cruises aims to excel in the same niche, so Viking Holdings has its task cut out.
In December, Citi analysts considered the company undervalued and assigned a price target of $54. Analysts believe the company deserves the same multiple as its competitor RCL, but a lot of that will depend on how the company deals with the new competition. So far, the stock has recovered well from the dip caused by RCL’s impressive earnings. The market is willing to give the stock the respect it deserves. As soon as VIK can prove with numbers that it can compete, the valuation will take care of itself.
Overall VIK ranks 5th on our list of the high growth travel services stocks for 2025. While we acknowledge the potential of VIK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as VIK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
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