Cruise Stocks News: Why CCL, RCL and NCLH stocks are sailing higher today

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Today is a very green day for a range of cruising stocks. Main cruise lines Carnival (NYSE:CCA), Royal Caribbean (NYSE:RLC) and Norwegian cruise line (NYSE:NCLH) have all posted impressive gains. These stocks are up 4%, 4.1% and 4.4% respectively at the time of this writing.


Indeed, the past few months have provided cruise stocks with enormous volatility. The stock charts for each of these operators are very much like waves, with surges and dips following news about Covid-19 and its multiple variants.

Lately, the news has been too bearish for the major cruise lines. Concerns about the fast-spreading omicron variant have poured cold water on the reopening thesis. What was once a favorite sector has become a place that many investors have moved away from.

However, today there is news that finally points in a positive direction. Let’s dive into what’s driving these cruise lines right now.

Cruise shares rise higher on key analyst upgrade

Today, Stifel analyst Steven Wieczynski took a rather interesting stance on the cruise industry. Specifically, in an analyst note linked to Royal Caribbean, Wieczynski dubbed 2022 “the year of the cruise.”

If this stock sounds bullish, that’s because it is.

The reasons for this bullish call on cruise stocks are worth examining. Wieczynski believes cruise lines are sufficiently capitalized to weather the storm of the pandemic. With further dilution out of the picture, a recovery in passenger volumes and capacity increases over time should boost fundamentals for these cruise stocks.

Of course, this fundamentally-based bullish outlook on cruise stocks is not a view that everyone shares. After all, cruise ships have been besieged by the pandemic. This is perhaps the most affected sector of all.

Still, the addition of a recent Centers for Disease Control and Prevention (CDC) “ship color status” matrix has allayed the concerns of many passengers — and investors. Currently, there are no vessels assigned a “red” status (requiring additional sanitary measures).

Of course, many cruise ships have passed the CDC’s further investigation status, but the lack of specific additional regulations following omicron for all listed ships is seen by investors as a bullish sign today. . And rightly so.

As of the date of publication, Chris MacDonald had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to publishing guidelines.

Chris MacDonald’s love of investing has led him to pursue an MBA in finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative long-term investment outlook.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.