STOCKS TELEGRAPH

Tag: Cruise Line Stocks

  • The Three Top Cruise Line Stocks to Watch For in 2021

    The Three Top Cruise Line Stocks to Watch For in 2021

    Cruise Line will have its time in the future. For now, let’s watch out for the best in the market.

    The cruise line industry has much to prove as the market has still enough potential. However, the bears are roaming around, as the pandemic seems to prolong. The fact that travel stocks, in general, have been bad bets for investors last year. It wouldn’t be fair enough to rule out that there were some notable performers from the industry, which kept up their progress.

    The cruise line companies operate across the globe and are part of various destinations, offering a variety of itineraries and themed cruises. People use to spend vacations and have parties and enjoy their time out. We might see the demand for such functions increase in the coming time, with the overall situation calming down. Let’s see the three top cruise line stocks to watch for in 2021.

    Norwegian Cruise Line (NCLH)

    Norwegian Cruise Line (NCLH) is the third largest cruise line company in the world by passengers. NCLH stock has been on a roll since October last year. Overall, the company has been on the downward side, with a sequential-quarter increase in debts.

    The CFO of NCLH, Mark A. Kempa during the Q3 report noted that they are positioning the company to overcome the pandemic hurdles and clear its way for long-term financial recovery. Kempa added that they are working on reducing its cost and adapt a strategy to enhance its liquidity profile.

    The company intends to relaunch its vessels and over the longer run, optimize its balance sheet and keep things to move as they were post-pandemic. So, Norwegian being one of the biggest giants in the industry must be in your sight for a potential investment in the long-term.

    Lindblad Expeditions (LIND)

    Lindblad Expeditions (LIND) owns and operates cruise ships. The Company provides cruising and adventure travel to its customers. The company has been working with guests to amend travel plans and refund payments—following the circumstances.

    Lindblad’s ships are working with minimum crew on-board to ensure that the COVID-19 SOPs are being followed. During the past year, the company has focused to gather funds to ensure that they on keep on running smoothly during these stuff times.

    In mid-2020, the company announced that it raised $85 millionthrough private placement issuance of convertible preferred equity to prominent investors. This capital raise is expected to support LIND’s liquidity needs through this year, even if the global pandemic once again causes lockdown.

    Moreover, during Q3 2020, the company reported that it has implemented significant cost reduction strategies. So, investors must keep LIND in their investment book.

    World Fuel Services (INT)

    World Fuel Services (INT) is one of the leading firms that operate across three different segments which include aviation, land, and marine-centered businesses.  INT is part of the Fortune 100 companies.

    INT’s marine business has massively impacted by the pandemic but it has much potential to bounce back. The company has different partners other than cruise lines within its marine sector.

    For investors, the earnings growth rate of the company is 2.5%. The company’s anticipated EPS for this year subject to an increase by a whopping 59.1%. This compares to the industry average EPS growth of 58.5%, as per Zacks. So, INT is another key bet that could be beneficial in the long-term.

  • The 3 Top Cruise Line Stocks for Investment in 2021

    The 3 Top Cruise Line Stocks for Investment in 2021

    Cruise Line industry after a hard-fought battle last year is going to get tested again.

    The cruise line industry is a part of the broader travel and tourism industry. The main focus is to provide entertainment in the sea environment. The cruise line firms have taken a massive hit from the global pandemic. The cruise ship’s operations were off for a long period following the COVID-19 restrictions.

    The industry is still a big risk for the investors. Despite we have the vaccine in the market but still the vulnerability level is quite high. The fact that the vaccine is limited and the scale of the pandemic is immense. There are nearly 25.86 million active coronavirus cases at the moment, so things are still unreliable for the cruise line industry to begin full operations in the near future.

    The cruises have limited right to set sail again. Some of the industry leaders that can stand a chance for potential investment; will have look at them. Here are the three possible investment options for cruise line stocks this year.

    Carnival Corp. (CCL)

    Carnival Corp. (CCL) had a testing period last year—just like another cruise firm. The company was able to shrink its expenses through the removal of 19 less efficient ships, 15 of which have already left the fleet.

    In the fourth quarter, the company had a net loss of $1.9 billion, while the remaining cash balance was around $9.5 billion. The company has taken some aggressive actions to keep managing the balance sheet and reducing capacity. Carnival believes that they are well-positioned to capitalize on pent-up demand—being the leading force of the industry.

    In the past few days, CCL stock has continued with a strong trend, as investors respond to the firm’s initiative to support digital gambling board its Princess cruise line. The company plans to launch its new Ocean Sportsbook—a digital application under process in collaboration with Miomni Online Gaming Solutions.

    Being the industry leader and with a well managed financial position, Carnival Corp. (CCL) is one to watch this year.

    Royal Caribbean (RCL)

    Royal Caribbean (RCL) is another promising cruise line stock that would amuse investors if they are willing to bet in the cruise line industry. Royal Caribbean is one of the most decorated cruise line firms in the market right now. Just like other counterparts, the company has faced hard times due to pandemic.

    However, compared to Carnival, RCL shares price dropped almost 45% last year. While CCL shares plunged up to 58%. Royal Caribbean is about to report its Q4 results, expected to record earnings loss of $5.04 per share, as per Zacks.

    Historically, the company has had a higher command mark-up for its cruises, which means RCL would have a smoother path back to profitability once the company starts sailing at its maximum.

    OneSpaWorld (OSW)

    OneSpaWorld (OSW) has been a better performing stock over the 12-months. Those investors who betted on OSW back in March would have made profits by now. Smart investors know that the drop in shares price is a massive opportunity to cash in.

    With that being said, OneSpaWorld is highly dependent upon cruise line operations for its revenue and operations. In the Q3 report, the company noted that it has enough liquidity to sustain its operations through at least Dec. 2021.

    Two Wall Street analysts recommend OSW as a buy. But the stock is trading in an uncertain trend since the start of this year. The best choice would be to jump in when it’s down. However, the best thing is to wait for now and watch the trend and updates of quarterly results.