HomeMarket NewsThe Top 3 Cruise Stocks to Buy in April 2024

The Top 3 Cruise Stocks to Buy in April 2024

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Use recent weakness in cruise stocks as an opportunity.

At the moment, the top three cruise stocks are all oversold after a recent pullback. But that won’t be the case much longer with most already starting to pivot higher. Even the travel exchange-traded fund (ETF), the Defiance Hotel, Airline, and Cruise ETF (NYSEARCA:CRUZ) is oversold and ready to pivot higher. Better, not only does the ETF offer you exposure to leading cruise stocks, like Royal Caribbean (NYSE:RCL) and Carnival (NYSE:CCL), but it also diversifies with leading hotel and airline stocks.

In fact, I’d also use weakness in the CRUZ ETF as an opportunity. Last trading at $21.38, I’d like to see it initially retest $23 a share immediate term. 

Or, if you’d rather just stick with some of the top, oversold individual cruise stocks, here are three top ones you may want to consider buying immediately. Most won’t stay this oversold for long.

Royal Caribbean (RCL)

Royal Caribbean (RCL) ship at sea from an overhead view

Source: ImagineStock / Shutterstock.com

After testing $140.58, Royal Caribbean pulled back to support at its 50-day moving average. Even better, RSI, MACD, and Williams’ %R are all starting to pivot from over-extensions into oversold territory, as well. Last trading at $129.21, I’d like to see RCL initially retest prior resistance at $140.58 immediate term.

Helping, analysts at Mizuho just initiated a buy rating on the RCL stock, with a price target of $164. “The firm says the company should be able to drive incremental demand through the expansion of existing destinations, the development of new attractions, as well as differentiated ships,” according to TheFly.com.

Barclays’ analysts also raised their price target on RCL to $154 with an overweight rating ahead of the company’s earnings call on April 25. The firm expects to see positive demand and yield updates when RCL reports its earnings later this month. Goldman Sachs even added RCL to its Conviction List as part of the firm’s “U.S. Conviction List – Directors’ Cut.”

Carnival (CCL)

Cruise ship Carnival Conquest docked at port Willemstad on sunset. Cruise stocks.

Source: NAN728 / Shutterstock.com

Carnival is also attractive on its latest pullback to $14.12 after testing a high of $17.68. It’s also over-extended on RSI, MACD, and Williams’ %R and is starting to slowly pivot higher. From its last traded price of $14.12, I’d like to see it initially retest $17.68 and potentially test $19.50.

Analysts at. Tigress Financial just raised their price target on CCL to $25, with a buy rating. All thanks to record booking trends driven by strong consumer demand for cruising. Even Barron’s recently noted that CCL’s recent pullback is an opportunity worth buying. JPMorgan also raised its price target to $23 with an overweight rating on the stock. 

Barclays raised its price target to $25 with an overweight rating, noting “The company’s Q1 results were ‘solid’, with ‘particularly bullish’ pricing commentary and forward commentary on bookings/demand momentum that showed no discernible cracks,” as noted by TheFly.com.

Much like RCL, CCL should have plenty of smooth sailing ahead.

Norwegian Cruise Line (NCLH)

Norwegian Cruise Line ship docked in Saint Petersburg. NCLH stock.

Source: Nazar Skladanyi / Shutterstock

Even the pullback in Norwegian Cruise Line (NYSE:NCLH) is attractive.

After testing a high of about $21.50, it dipped to $17, where it became oversold on RSI, MACD, and Williams’ %R, as well. Much like RCL and CCL, NCLH is also starting to pivot higher. From its current price of $18.29, I’d like to see it retest $21.50 initially.

Even more attractive, the company just ordered eight new ships, which is the biggest order in company history. “We expect these strategic investments will secure our growth trajectory, significantly boost our earnings profile, and enhance shareholder value well into the future,” added Chief Financial Officer Mark Kempa.

With earnings, for fiscal year 2023, the company posted a 32% jump in revenue, as compared to 2019. Revenue per passenger cruise day was up 17% from 2019. In addition, advance ticket sales at the close of 2023 were up 56% from 2019 to $3.2 billion. All of those numbers are only expected to increase from here, with much stronger demand.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

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