Are Cruise Stocks a Good Investment Heading Into the Summer?
People tend to book cruises for their summer vacation plans, which means cruise lines often see a bump in business and revenue. Expert investors have been bullish on cruise stocks since mid-spring, and that sentiment seems to continue.
Check Out: In 5 Years, These 2 Stocks Will Be More Valuable Than Apple
Read Next: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
Reports from CNN showed the trend of summer travel spending will continue in 2024, with Memorial Day travel numbers solid, and 72% of Americans saying they plan to travel this summer, according to data from the Bank of America Institute.
“The strength of the data already speaks to it being a solid summer,” David Tinsley, senior economist at the Bank of America Institute, said in a presentation reported by CNN.
Likewise, Paula Twidale, senior vice president at AAA Travel, said in a press release, “We haven’t seen Memorial Day weekend travel numbers like these in almost 20 years.”
Wealthy people know the best money secrets. Learn how to copy them.
Should you buy cruise stocks right now, and, if so, which ones?
Investors are bullish on most travel stocks, including those for the major cruise lines. Royal Caribbean showed strong first-quarter earnings with “strong bookings and robust onboard spending,” according to CNN. In April, Reuters reported that Americans have been booking cruises at greater volumes than they were pre-pandemic, with 35.7 million people expecting to set sail this year, a 4.2 million increase from last year.
Goldman Sachs issued “buy” ratings for Royal Caribbean, Carnival Corporation, and Norwegian Cruise Lines Holdings in March, but it’s not too late to get in on these investments.
As recently as this week, wealth management and investment banking firm Stifel reiterated its “buy” rating for Carnival, citing a potential upside of $20, according to InvestorPlace.com. Carnival stock is currently trading at just over $16.
Norwegian Cruise Lines is growing rapidly, announcing the addition of eight new ships over the next 10 years and the construction of a multi-ship pier at the cruise line’s private Bahamas island, Great Stirrup Cay.
TipRanks gives Norwegian a “hold” rating right now, with four analysts calling the stock a “buy” and nine saying “hold.” Only one analyst says to sell. Right now, the stock is trading for just over $20, with a 14% upside.
Learn More: 10 Things You Should Do When Your Child’s 529 Account Reaches $20,000
Investors at TipRanks give Royal Caribbean stock a “strong buy” rating, with 13 analysts saying it’s a buy and two saying to “hold.” Analysts give the stock a high price target of $184, and it’s currently trading at $166.29, according to TipRanks data.
More From GOBankingRates
5 Places in America To Retire That Are Just as Cheap as Mexico, Portugal and Costa Rica
This is The Single Most Overlooked Tool for Becoming Debt-Free
This article originally appeared on GOBankingRates.com: Are Cruise Stocks a Good Investment Heading Into the Summer?