Cruise ship stocks ETF – are they worth investing in?

26 May 2021

After the 2020 Coronavirus pandemic, the price of cruise ship companies’ stocks decreased significantly. The main reason was a complete halt of operations and something resembling a hibernation period for cruise companies. However, hopes were still high that stocks would return to their previous prices once the pandemic was dealt with.

After creating the vaccine and its following positive effects, businesses and the stock market, including cruise ship stocks, recovered.

According to the data in 2021, these are three of the best cruise ship stocks, including:

Carnival Corp. (CCL)
Norwegian Cruise Line Holdings Ltd. (NCLH)
Royal Caribbean Group (RCL)

All of the above-mentioned company stocks had fallen considerably. For example, at the beginning of 2020, one of the best cruise ship stock prices of the Norwegian Cruise Line Holdings was at its highest at 60 US dollars per share. However, after the coronavirus outbreak in March, the price fell to 8 US dollars. But between 2020-2021, the price slowly recovered to around 30.22 US dollars. The same tendency was seen with other companies as well-meaning every cruise ship ETF stock would go through the same process.

This article will discuss the three above-mentioned company stocks one by one and find out what their plans and predictions are for the future.

What are the best cruise ship stocks and ETFs?

Even though cruise ship ETF stocks were a bad bet for investors in 2020 - especially those who were trading them as stock CFDs with leverage, this tendency changed entirely after introducing the vaccine.

The main example for this is the top cruise ship stock price rising considerably. As already discussed in the previous paragraph, the cost of Norwegian Cruise Line Holdings Ltd. stocks is recovering in quite a stable manner.

In Carnival Corp. stocks, the share price was at its highest in 2018 and was estimated at 71.65 US dollars. After which, it devalued to 8.49 US dollars during the first lockdowns occurring globally. Recovery was soon upon Carnival Corp, though, reaching 27.55 US dollars per share by April 2021, almost half the value of the price it had before the pandemic hit.

Royal Caribbean Group cruise ship stocks ETF had some of the best rates in January 2020, and the top cruise ship stock price per share was 135.05 US dollars which then dropped to 23.81 US dollars after the first lockdown. In April 2020, the cost per share was estimated at 93.27 dollars.

Carnival Corp. (CCL)

Carnival stocks are the most in-demand cruise stocks currently. Carnival Corp. is a British-American cruise operator founded in 1972. Its founder was Ted Arison, and the company is headquartered in Miami, Florida, United States, and Southampton, United Kingdom.

The revenue, according to 2020 data, is estimated at US$5.595 billion, and the price of total assets is defined at US$53.593 billion.

Carnival cruise ship stocks ETFs had a massive jump in November 2020. They surged up over 46%, providing first-ever evidence of its surge later on as the vaccine stabilized the health crisis.

Because of CDC recommendations and restrictions, Carnival stopped offering its services to customers on 30th June 2020. However, investors didn’t stop buying Carnival's shares which pumped them nearly 8% in just one month between March-April 2021. What’s more, it is worth noting that the company’s stocks compared to 2020 increased by 32% in 2021.

One of the many reasons Carnival stocks suddenly started to grow was its child company, Holland America. It began to pre-book cruises for September 2022 and April 2023, bringing at least some sales to the conglomerate.

Norwegian Cruise Line Holdings Ltd. (NCLH)

Norwegian Cruise Line Holdings Ltd. is an American cruise line. The mentioned company was founded in 1966, and it is one of the leading companies in the tourism industry. The founders of the company are Knut Kloster Ted Arison. Norwegian Cruise Line Holdings Ltd. is headquartered in Miami, Florida, United States. According to 2018 data, the company’s revenue is defined as 6.06 billion US dollars.

According to the company’s 2021 report, the Norwegian Cruise Line Holdings Ltd. owns 28 ships with approximately 59 150 berths. What’s more, the company allows people to travel to more than 490 destinations worldwide. Also, it is worth mentioning that Norwegian will introduce nine additional ships by the beginning of 2027.

According to the experts, the company stocks will rise by 56% by the end of 2023. The mentioned year isn’t random. The company has already started to prepare for cruise travels. It will offer customers additional destinations that are quite exotic and attractive for those who enjoy being in prominent and calm places.

So, the given information tells a lot about the company’s future performance in the market. Even though the mentioned company is the smallest of the two - Carnival Corp. and Royal Caribbean Group, Norwegian performs exceptionally well. Its stocks are going to increase in the future. Because of the attractive offerings and the way the company tries to allure more and more people, the company’s performance in the stock market seems quite positive.

Royal Caribbean Group (RCL)

Royal Caribbean Group is an American global cruise holder company founded in 1997. The Founders of the company are Richard D. Fain and Jason Liberty. The company is headquartered in Miami, Florida, U.S. The revenue of Royal, according to 2020, is estimated at 2.2 billion US dollars, and the price of total assets is defined as 32.47 billion US dollars.

In 2021 February, the company’s shares have grown by 9% compared to January 2021, and the company plans to increase its stocks to 21% by the end of 2021. What’s more, it is worth mentioning that the cruise company ships remained at the port because of the coronavirus outbreak. Because of that, RCL has seen a loss of 1.4 billion dollars. However, the company is going to recover. The main reason behind that is that more and more people are starting to book the voyage in advance.

Compared to November and December, since the start of 2021, according to the management, the price of the company’s per share has grown by 30%. The main thing is that more people are booking their places in advance to have a calm journey after the exhausting pandemic period.

Because of its growing tendency and because it starts recovering and performing exceptionally well in the stock market, RCL stocks can be one of the significant stocks in the market. What’s more, the company plans to raise its sales by 45% by the end of 2022. What’s more, because of the vaccine and its positive effects, the traveling and cruise industry and, therefore, RCL stocks will recover and become more attractive for people and investors.

The key takeaways – ETF cruise stock

Because of the Coronavirus outbreak, several restrictions and regulations took place. Such events had highly damaging effects on the tourism industry. However, as the vaccine is created and more people become vaccinated, the drive starts to recover. Through the recovery, the cruise ship companies, most supposedly cruise ship companies, will perform well in the stock market.

Even though the coronavirus led many companies to lose, they started to offer their clients more eloquent and sophisticated services. Because of that, the demand for their services is growing from time to time. The increasing demand for the companies’ services means that the price of their shares is going to boost respectively.

All of the above-discussed companies, Carnival Corp. (CCL), Norwegian Cruise Line Holdings Ltd. (NCLH), and Royal Caribbean Group (RCL), are some of the leading companies in the cruise ship industry. Like the tourism industry, they’ve seen a dramatic decrease in stock prices; however, according to the 2021 data, all mentioned companies are doing quite well and are starting to recover. As time goes by, cruise ship stocks are going to rise.

Because of the coronavirus outburst, the demand for the ship cruise stocks has decreased significantly, which means investors can buy the aforementioned company stocks at a lower price and sell at a larger price as the industry recovers. What’s more, it is worth noting that experts and analysts have an optimistic prediction about the ship cruise stocks and industry. That means it is the best time to invest in cruise ship stocks and ETFs to have high benefits and money earnings.

FAQs on the best cruise ship stocks to buy

What is the best cruise line stock to buy now?

The most prominent among others are Royal Caribbean Group stocks. Because of the coronavirus outbreak, many companies have seen the loss, but there are some companies, as well, that are remaining in their leadership positions in the stock market. According to the statistics, the Royal Caribbean Group stocks have fallen significantly in March of 2020. But the company started to recover quite fast and in 2021 is the best cruise ship company in the world. According to 2021 April data, the company’s per-share price is estimated at 91 US dollars, which is lower than the company’s highest rate; however, as life returns to normal and Royal Caribbean recovers, the demand for the company’s services, sea voyage and cruises will most likely rise. This means the company will increase its shares in the marketplace and become more and more successful among other cruise ship companies.

Is Cruise stock a good investment?

Yes! Cruise stocks are a good investment, and there are several reasons beyond that. If you are a trader, who prefers to follow the bullish strategy rather than bearish, then cruise stocks can be one of the best investments. Even though there is a risk of seeing loss through investing in cruise ship stocks, there is a high hope, that is proven by experts and analysts, that the companies are going to recover and after the end of the pandemic reach their highest prices and shares in the marketplace. Also, it is worth mentioning that the top cruise ship companies that have seen a drastic fall in their share prices are now performing exceptionally well in the stock market and have a growing tendency. Because of the price fall, investors can buy the cruise ship stocks and then sell them at a higher price. Through that, they can get benefits and high money returns, as the industry is going to grow more and more and offer customers several new and unforgettable services and journeys.

Is now the time to buy cruise line stocks?

Yes, it’s the right time to buy cruise line stocks. The main idea is that cruise ship stocks have fallen incredibly after the coronavirus outburst. This is because of diminished demand for cruising and all the services offered by the cruise line. However, as time goes by, the cruise ship company stocks, and the recovering tendency is going quite well, which means that their prices will grow in the future.
As some cruise ship companies have seen a significant decrease in their revenues after the pandemic, in 2021, they started to offer customers booking in advance. Their services became more eloquent and sophisticated. Because of that tendency, the demand for their services will rise. Therefore, it is the best time to buy cruise line stocks, as they promise investors high returns and benefits after the pandemic situation recovers.