Cruise Lines Head For Holiday Travel Spike

Cruise lines have sailed into the IBD 50 list of growth stocks in droves as leisure travel picks up heading into the holidays.

Carnival (CCL), Norwegian Cruise Line (NCLH), Royal Caribbean Cruises (RCL) and American depositary shares of Carnival (CUK) are close to buy points. CCL stock is on a long winning streak.

X

Royal Caribbean: Slightly Extended

RCL stock is slightly extended from a cup base’s buy point of 112.95. Shares retook the 200-day moving average after third-quarter results on Oct. 26. Sales of $4.2 billion grew 39% while earnings of $3.85 per share surged from 26 cents per share in the prior year period.

RCL shares have risen a staggering 142% so far this year. In comparison, the S&P 500 holds a 20% gain.

RCL has a Composite Rating of 94 and EPS Rating of 83. Its Relative Strength Rating is nearly ideal at 97. The stock ranks second in the leisure services group. And its Accumulation/Distribution Rating of A- shows strong institutional support. Mutual funds own 64% of outstanding shares and more funds have been net buyers over the past three quarters.

Royal Caribbean operates a fleet of 64 ships worldwide that sail to more than 1,000 destinations under such cruise lines as Royal Caribbean International, Celebrity Cruises and Silversea.

Norwegian In A Cup Base

Norwegian also is in a cup base, and its buy point is 22.75, according to IBD MarketSmith. Mutual funds own 47% of outstanding shares. The stock also has a strong Accumulation/Distribution Rating of B.

Sales grew 57% to $2.5 billion while earnings of 76 cents per share reversed a loss of 64 cents in the prior year quarter. Norwegian operates 34 ships under its brands, Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises.

NCLH stock has gained 54% year to date. Shares don’t have the ratings that Royal Caribbean possesses, but are still strong. Norwegian’s Composite Rating is 86 and its EPS Rating is 81. Its Relative Strength Rating stands at 88.

CCL Stock On Winning Streak

CCL is on a 10-day winning streak in a cup base with a buy point of 19.55. It is also the longest winning streak since March 28, 2017, when it rose for 10 straight days, according to Dow Jones market data.

The company recently reported that third-quarter sales grew 59% to $6.9 billion. Earnings per share of 86 cents reversed a loss of 58 cents in the prior year quarter.

Technical strength is seen in CCL’s Composite Rating of 92 and RS Rating of 97 though the EPS Rating lags at 74. CCL also has shown impressive performance and has risen 123% so far this year. The cruise line stock boasts a strong Accumulation/Distribution Rating of A. Mutual funds own 34% of outstanding shares.

American depositary receipts of Carnival are also in a cup base with a buy point of 17.67. CUK trades on the London Stock Exchange and has done even better than its American counterpart with a gain of 126%. Both CCL and CUK trade on the New York Stock Exchange.

Like Royal Caribbean, the Carnival empire includes a portfolio of cruise lines such as Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, P&O Cruises, Costa Cruises, AIDA Cruises, P&O Cruises and Cunard.

Please follow VRamakrishnan on X/Twitter for more news on the stock market today.

YOU MAY ALSO LIKE:

Top Growth Stocks To Buy And Watch

Learn How To Time The Market With IBD’s ETF Market Strategy

Find The Best Long-Term Investments With IBD Long-Term Leaders

MarketSmith: Research, Charts, Data And Coaching All In One Place