These undervalued cruise stocks could gain in 2024 as passenger numbers jump
Cruise lines served a total of 31.7 million passengers last year – up significantly from 4.8 million only in 2021.
Simply put, the industry has made an exceptionally strong comeback after the pandemic. Having said that, here is our list of undervalued cruise stocks that could gain in 2024 as the passenger number continues to climb.
Carnival Corp (NYSE: CCL)
Carnival is worth buying at about $14.50 a share as it’s down nearly 20% versus its year-to-date high in early January.
It’s on our list of top undervalued cruise stocks to buy in 2024 also because it’s the world’s largest cruise company known globally for its affordable prices and exceptional customer service.
$CCL is particularly attractive at writing considering it started this year with an incredibly strong position both in terms of prices as well as occupancy rates.
Not to mention the New York-listed firm posted record revenue for its fiscal Q1 in March (read more). Note that a recent report from Barron’s also dubs a selloff in Carnival stock this year an opportunity to buy at a discount.
Norwegian Cruise Line Holdings Ltd (NYSE: NCLH)
Norwegian makes it to our list of best undervalued cruise stocks that could gain in 2024 because it’s oversold on both RSI and MACD at writing.
Versus their year-to-date high, shares of the company that operates three cruise lines as wholly-owned subsidiaries are currently down more than 25%.
$NCLH is worth buying this year as it has lowered the debt on its balance sheet by a whopping $1.9 billion and is increasing capacity to meet elevated demand. Norwegian recently ordered eight new ships – the largest order in its history.
It is also worth mentioning that the cruise company ended 2023 with revenue up 32% and advance ticket sales up 56% versus pre-pandemic (2019).
Royal Caribbean Cruises Ltd (NYSE: RCL)
Shares of Royal Caribbean have done much better than peers this year but are still likely to push further up in the coming months as its investments into ships that use liquefied natural gas continue to pay off.
The $35 billion giant that’s listed on the New York Stock Exchange is delivering on its commitment to expand internationally as well. According to analysts at Mizuho:
“$RCL should be able to drive incremental demand through expansion of existing destinations, the development of new attractions, as well as differentiated ships.”
Their $164 price target on Royal Caribbean stock that generated an all-time high revenue of $13.9 billion in 2023 suggesting a more than 20% upside from here.
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