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Top Cruise Line Stocks for Q1 2022

The cruise line business is a part of the broader journey and tourism business, targeted totally on offering sea-based trip experiences. Corporations within the business personal and function cruise ships in numerous locations worldwide, providing quite a lot of itineraries and themed cruises. In addition they might present different journey and trip providers. The large cruise line corporations embody Carnival Corp. (CCL) and Norwegian Cruise Line Holdings Ltd. (NCLH). The cruise line business has been severely affected by the COVID-19 pandemic and associated journey restrictions and different social-distancing measures. The unfold of the fast-spreading Omicron variant prompted the Facilities for Illness Management and Prevention (CDC) to boost its journey warning for cruise ships to its highest stage on the finish of December. The CDC is advising folks to not embark on cruises whether or not they’re vaccinated or not. Some corporations have just lately cancelled chosen cruises as a result of unfold of Omicron.

All pure-play cruise line shares out there to U.S. traders are underperforming the broader market, having offered complete returns under the 24.4% complete return of the Russell 1000 Index over the previous 12 months. This market efficiency quantity and all statistics within the tables under are as of Jan. 6, 2022.

Beneath, we have a look at the highest 3 cruise line shares with the very best worth, quickest progress, and most momentum.

There are simply 4 pure-play cruise line corporations simply out there to U.S. traders, however we have a look at them in our common model. As a result of your entire business has suffered losses in the newest quarter, the worth part under shall be based mostly on price-to-sales ratio fairly than the same old price-to-earnings ratio (P/E Ratio).

These are the cruise line shares with the bottom 12-month trailing price-to-sales (P/S) ratio. For corporations in early levels of improvement or industries affected by main shocks, this may be substituted as a tough measure of a enterprise’s worth. A enterprise with increased gross sales might finally produce extra revenue when it achieves, or returns to, profitability. The worth-to-sales ratio exhibits how a lot you are paying for the inventory for every greenback of gross sales generated.

Finest Worth Cruise Line Shares
  Value ($) Market Cap ($B) 12-Month Trailing P/S Ratio
Lindblad Expeditions Holdings Inc. (LIND) 17.82 0.9 10.9
Carnival Corp. (CCL) 21.07 24.6 12.4
Royal Caribbean Group (RCL) 77.92 19.9 32.6

Supply: YCharts

  • Lindblad Expeditions Holdings Inc.:  Lindblad Expeditions owns and operates cruise ships, and gives expedition cruising and journey providers. The corporate provides each sea-based and land-based expeditions. It introduced in early November monetary outcomes for Q3 of its 2021 fiscal yr (FY), the three-month interval ended Sept. 30, 2021. Lindblad’s internet loss out there to shareholders narrowed barely to $25.7 million from $27.8 million within the year-ago quarter. Income expanded greater than 63 instances as demand started to get well. The corporate mentioned that volumes have been nonetheless not again to pre-pandemic ranges.
  • Carnival Corp.: Carnival operates the world’s largest fleet of cruise ships. The corporate additionally owns travel-related properties reminiscent of resorts and trip locations all through the world. The ship Zuiderdam, operated by Carnival model Holland America Line, returned to service for the primary time because the industrywide pause quickly after the onset of the pandemic in early 2020.
  • Royal Caribbean Group: Royal Caribbean Group, previously generally known as Royal Caribbean Cruises, operates a fleet of vessels within the cruise trip business. On Jan. 8, 2022, the rise in COVID-19 circumstances as a result of Omicron variant prompted the corporate to pause or postpone a few of its cruise operations. In early November, Royal Caribbean introduced that Richard Fain was stepping down as chief government officer (CEO), efficient Jan. 3, 2022. Chief Monetary Officer (CFO) Jason Liberty was appointed to switch Fain, who will stay as chair of the board of administrators.

Quickest Rising Cruise Line Shares

These are the cruise line shares with the very best year-over-year (YOY) gross sales progress for the newest quarter. Rising gross sales will help traders to establish corporations which can be in a position to develop income organically or by way of different means, and to search out rising corporations that haven’t but reached profitability. As well as, earnings per share (EPS) could be considerably influenced by accounting components that will not mirror the general power of the enterprise. Nonetheless, gross sales progress can be doubtlessly deceptive concerning the power of a enterprise, as a result of rising gross sales on money-losing companies could be dangerous if the corporate has no plan to succeed in profitability.

Quickest Rising Cruise Line Shares
  Value ($) Market Cap ($B) Gross sales Development (%)
Lindblad Expeditions Holdings Inc. (LIND) 17.82 0.9 6,230
Carnival Corp. (CCL) 21.07 24.6 3,800
Norwegian Cruise Line Holdings Ltd. (NCLH) 21.34 7.9 2,250

Supply: YCharts

  • Lindblad Expeditions Holdings Inc.: See above for firm description.
  • Carnival Corp.: See above for firm description.
  • Norwegian Cruise Line Holdings Ltd.: Norwegian Cruise Line operates a fleet of passenger cruise ships. The corporate provides itineraries and theme cruises. In early January, Norwegian canceled a lot of voyages as a result of unfold of the Omicron variant within the U.S.

These are the cruise line shares that had the very best complete return during the last 12 months.

Cruise Line Shares with the Most Momentum
  Value ($) Market Cap ($B) 12-Month Trailing Whole Return (%)
Lindblad Expeditions Holdings Inc. (LIND) 17.82 0.9 9.6
Royal Caribbean Group (RCL) 77.92 19.9 7.9
Carnival Corp. (CCL) 21.07 24.6 3.3
Russell 1000 N/A N/A 24.4

Supply: YCharts

  • Lindblad Expeditions Holdings Inc.: See above for firm description.
  • Royal Caribbean Group.: See above for firm description.
  • Carnival Corp.: See above for firm description.

The feedback, opinions and analyses expressed herein are for informational functions solely and shouldn’t be thought-about particular person funding recommendation or suggestions to spend money on any safety or to undertake any funding technique. Whereas we consider the data offered herein is dependable, we don’t warrant its accuracy or completeness. The views and techniques described on our content material will not be appropriate for all traders. As a result of market and financial situations are topic to fast change, all feedback, opinions, and analyses contained inside our content material are rendered as of the date of the posting and should change with out discover. The fabric just isn’t supposed as an entire evaluation of each materials reality concerning any nation, area, market, business, funding, or technique.

Investopedia requires writers to make use of main sources to help their work. These embody white papers, authorities knowledge, authentic reporting, and interviews with business specialists. We additionally reference authentic analysis from different respected publishers the place applicable. You’ll be able to be taught extra concerning the requirements we comply with in producing correct, unbiased content material in our
editorial policy.
  1. Facilities for Illness Management and Prevention. “Omicron Variant: What You Need to Know.” Accessed Jan. 9, 2022.

  2. The Wall Avenue Journal. “CDC Tells Americans to Avoid Cruise Ships.” Accessed Jan. 9, 2022.

  3. YCharts. “Financial Data.” Accessed Jan. 7, 2022.

  4. Lindblad Expeditions Holdings Inc. “Lindblad Expeditions Holdings, Inc. Reports 2021 Third Quarter Financial Results.” Accessed Jan. 9, 2022.

  5. Carnival Corp. “Holland America Line’s Zuiderdam Resumes Service from Port of San Diego; Second Ship from California and Sixth Back to Cruising.” Accessed Jan. 9, 2022.

  6. Reuters. “Royal Caribbean pauses some cruise operations due to Omicron concerns.” Accessed Jan. 9, 2022.

  7. Royal Caribbean Group. “RICHARD FAIN STEPPING DOWN AS CEO OF THE ROYAL CARIBBEAN GROUP, TO CONTINUE AS CHAIR OF THE BOARD OF DIRECTORS; JASON LIBERTY NAMED TO SUCCEED HIM.” Accessed Jan. 9, 2022.

  8. Reuters. “Royal Caribbean, Norwegian Cruise cancel voyages amid Omicron scare.” Accessed Jan. 9, 2022.

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