Why Norwegian Cruise Line NCLH is a Top Value Stock for the Long-Term

Table Of Content

• Royal Caribbean Hikes Guidance on Surging Cruise Demand. The Stock's Rally Can Resume.
• Carnival Dividend Calendar
• Carnival Corp & plc paired
• Royal Caribbean
• Cruise Line Stocks With the Best Performance
• RCL, CCL, and NCLH: April Buy, Hold or Sell?
• Royal Caribbean Cruises Has Upside To Estimates, Says Bullish Analyst

Additionally, there is growing interest among millennials and Gen-Xers who have never cruised, with 73% considering a cruise vacation. Similarly, solo cruise travel is on the rise, prompting cruise lines to enhance offerings for solo travelers by increasing single-cabin availability. Additionally, expedition cruises are experiencing a surge in popularity, driven by the desire for immersive, responsible, and bucket-list travel experiences. This trend is evident across all age groups, with the number of passengers on expedition cruises more than doubling from 2016 to 2022. According to Lindblad, a majority of guests opted for future travel credits over a refund for voyages that were cancelled or rescheduled due to the pandemic. The travel company has seen significant increases in its booking numbers, even compared to pre-pandemic times.

Royal Caribbean Hikes Guidance on Surging Cruise Demand. The Stock's Rally Can Resume.

Moreover, the recent collapse of the Francis Scott Key Bridge in Baltimore will hit cruise lines’ net incomes as cruises will be forced to divert to other ports along the U.S. Meanwhile, growing sustainability concerns are likely to force cruise lines to get rid of older ships and order new ones. To maximize your returns, you want to buy stocks with the highest probability of success.

Carnival Dividend Calendar

Royal Caribbean stock gets bullish nod from Mizuho, eyes on new attractions and cost management By Investing.com - Investing.com

Royal Caribbean stock gets bullish nod from Mizuho, eyes on new attractions and cost management By Investing.com.

Posted: Wed, 17 Apr 2024 09:19:09 GMT [source]

Cruise operator Royal Caribbean observed a surge in first-time cruisers. To benefit from this opportunity, online travel companies, including Booking.com, are capitalizing on this trend, launching cruise verticals to cater to the growing demand. These are the cruise line stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in early stages of development or industries suffering from major shocks, this can be substituted as a rough measure of a business's value. A business with higher sales could eventually produce more profit when it achieves (or returns to) profitability.

Carnival Corp & plc paired

The big cruise line companies include Carnival Corp. and Norwegian Cruise Line Holdings Ltd. Considering how much the pandemic continues to affect cruise lines, investing in them is relatively risky. The cruise line business has high operating costs, and many cruise companies have lost a lot of money. Investors in search of safe stocks may want to stay away from this industry right now. The cruise industry was at the epicenter of the consumer discretionary sector which was rocked hard during the pandemic. Major COVID-19 outbreak headlines caused monumental damage to shares.

For the fiscal first quarter, which ended on February 29, 2024, CCL’s revenues increased 22% year-over-year to $5.41 billion. The company’s operating income stood at $276 million, compared to an operating loss of $172 million in the year-ago quarter. However, its adjusted net loss and adjusted loss per share narrowed 73.9% and 74.5% over the prior-year quarter to $180 million and $0.14, respectively.

Buy These Two Cruise Stocks, Goldman Says. It’s ‘The Next Wave of the Rising Tide.’ - Barron's

Buy These Two Cruise Stocks, Goldman Says. It’s ‘The Next Wave of the Rising Tide.’.

Posted: Wed, 13 Mar 2024 07:00:00 GMT [source]

It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum. Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days. Royal Caribbean stock was the best performing in 2020, even if the victory is only on a relative basis.

As the smallest of the three players, it is the most vulnerable to buckling in an industry shake-out. If we're not sailing on cruise ships by the end of next year, you're kidding yourself if you think all three players would survive nearly two years of disruption. In that grim scenario, you'd be hard-pressed to argue that Norwegian Cruise Line wouldn't be the first to capitulate. We have arranged the list according to the hedge fund sentiment around the securities, which was assessed from Insider Monkey’s Q database of about 900 elite hedge funds. Royal Caribbean Cruises Ltd. launched a private offering of $1.0 billion of senior-secured eight-year bonds on Thursday, tapping the high-yield bond market for the first time in 2024.

RCL, CCL, and NCLH: April Buy, Hold or Sell?

This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible. The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier. The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank.

The price-to-sales ratio shows how much you're paying for the stock for each dollar of sales generated. Norwegian raised its forecasts Q EPS guidance to 12 cents versus a loss of 20 cents consensus estimates. Full-year 2024 EPS is expected to be around $1.23 versus $1.13 consensus estimates. The company entered 2024 with all-time highs in booked position and pricing for its 2024 voyages. Net yield is expected to rise 5.5% as reported and nearly 5.4% constant currency versus 2023.

The company announced it had ordered 8 new cruise ships for its 3 brands to be delivered over 10 years. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.15% per year. These returns cover a period from January 1, 1988 through March 4, 2024. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.

Because the entire industry has suffered losses in recent quarters, the value section below will be based on price-to-sales ratio rather than the usual price-to-earnings ratio (P/E Ratio). Even relatively small absolute value changes in revenue have resulted in enormous percentage changes. Norwegian narrowed losses in 2023 and expects profitability in 2024 driven by record bookings and strong pricing power. For Q4 2023, Norwegian reported an EPS loss of 18 cents vs 14 cents consensus analyst estimates.

In its third quarter 2021 financial results, it reported that 2022 bookings were 51% ahead of bookings for 2021 and 27% ahead of bookings for 2020. However, cruise line companies are reporting strong sales for upcoming cruises, which indicates a rebound in demand. But they've also had to take on significant debt to get through the pandemic, and revenues aren't predicted to get back to pre-COVID numbers until 2024.

The cruise industry has made a comeback, and Royal Caribbean is leading the charge. Explore how you can make money from others' adventures, including the frontier of space travel. The main competitive advantage that Lindblad enjoys is its ability to offer premium, one-of-a-kind experiences.