3 Cruise Line Stocks to Buy Hand Over Fist in December

As the cruise industry continues to rebound from the COVID-19 pandemic, investors are looking for opportunities to capitalize on the growing demand for cruises. With strong consumer demand, widening margins, and robust momentum, cruise line stocks have shown impressive performance in recent months. In this article, we will explore three cruise line stocks that are well-positioned to continue their upward trajectory in December: Carnival (CCL), Viking Holdings (VIK), and OneSpa World (OSW).



1. Carnival (CCL)
Carnival, the world's largest cruise line by revenue and passenger volume, is a strong contender for investors looking to capitalize on the cruise industry's resurgence. The company's fiscal year ends in November, and it historically announces its fourth-quarter results in the final week of December. Carnival's latest "beat and raise" report in August showed impressive growth, with revenue rising 15% in its fiscal third quarter and adjusted earnings per share (EPS) soaring 62%. Customer deposits at the end of August were 7% ahead of the prior record set a year earlier, and Wall Street pros see a 10% top-line increase for the fiscal fourth quarter. Despite the stock's 44% year-to-date gain and more than 300% increase since the start of last year, it is trading for less than 16 times projected earnings for the fiscal year that began earlier this month. This makes Carnival an attractive option for investors seeking a reasonably priced leader with a potential needle-moving financial update over the holidays.



2. Viking Holdings (VIK)
One of the newest publicly traded cruise line stocks, Viking Holdings, hit the market at $24 in May and has nearly doubled since then. Unlike the larger cruise lines, Viking specializes in river cruises, catering to an affluent and seasoned clientele with a premium product. Viking dominates its niche, with a market share of the North American outbound market more than three times larger than its biggest competitor. The company's focus on luxury and exclusivity allows it to charge roughly four times Carnival's per-day average, driving strong revenue growth. In its latest quarter, Viking's revenue climbed 11%, accelerating from 9% in its first quarter as a public company. With a net profit margin of 18.5%, Viking is well-positioned to continue its impressive growth trajectory in the coming months.



3. OneSpa World (OSW)
OneSpa World, an asset-light company that operates cruise ship spas, is another attractive option for investors looking to capitalize on the cruise industry's resurgence. With a presence at 52 resorts, OneSpa World provides a consistent and growing revenue stream. The company is targeting adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth of 24% for the year, driven by its strong market position and asset-light business model. OneSpa World's net profit margin of 22.5% is among the highest in the industry, making it an appealing choice for investors seeking a high-margin play on the cruise industry's growth.



In conclusion, Carnival, Viking Holdings, and OneSpa World are three cruise line stocks well-positioned to continue their impressive performance in December. With strong earnings growth, robust consumer demand, and widening margins, these companies offer attractive opportunities for investors looking to capitalize on the cruise industry's resurgence. As the industry continues to rebound from the COVID-19 pandemic, these stocks are poised to benefit from the growing demand for cruises and the strong momentum in the sector.