Cruise Line will have its time in the future. For now, let’s watch out for the best in the market.
The cruise line industry has much to prove as the market has still enough potential. However, the bears are roaming around, as the pandemic seems to prolong. The fact that travel stocks, in general, have been bad bets for investors last year. It wouldn’t be fair enough to rule out that there were some notable performers from the industry, which kept up their progress.
The cruise line companies operate across the globe and are part of various destinations, offering a variety of itineraries and themed cruises. People use to spend vacations and have parties and enjoy their time out. We might see the demand for such functions increase in the coming time, with the overall situation calming down. Let’s see the three top cruise line stocks to watch for in 2021.
Norwegian Cruise Line (NCLH)
Norwegian Cruise Line (NCLH) is the third largest cruise line company in the world by passengers. NCLH stock has been on a roll since October last year. Overall, the company has been on the downward side, with a sequential-quarter increase in debts.
The CFO of NCLH, Mark A. Kempa during the Q3 report noted that they are positioning the company to overcome the pandemic hurdles and clear its way for long-term financial recovery. Kempa added that they are working on reducing its cost and adapt a strategy to enhance its liquidity profile.
The company intends to relaunch its vessels and over the longer run, optimize its balance sheet and keep things to move as they were post-pandemic. So, Norwegian being one of the biggest giants in the industry must be in your sight for a potential investment in the long-term.
Lindblad Expeditions (LIND)
Lindblad Expeditions (LIND) owns and operates cruise ships. The Company provides cruising and adventure travel to its customers. The company has been working with guests to amend travel plans and refund payments—following the circumstances.
Lindblad’s ships are working with minimum crew on-board to ensure that the COVID-19 SOPs are being followed. During the past year, the company has focused to gather funds to ensure that they on keep on running smoothly during these stuff times.
In mid-2020, the company announced that it raised $85 millionthrough private placement issuance of convertible preferred equity to prominent investors. This capital raise is expected to support LIND’s liquidity needs through this year, even if the global pandemic once again causes lockdown.
Moreover, during Q3 2020, the company reported that it has implemented significant cost reduction strategies. So, investors must keep LIND in their investment book.
World Fuel Services (INT)
World Fuel Services (INT) is one of the leading firms that operate across three different segments which include aviation, land, and marine-centered businesses. INT is part of the Fortune 100 companies.
INT’s marine business has massively impacted by the pandemic but it has much potential to bounce back. The company has different partners other than cruise lines within its marine sector.
For investors, the earnings growth rate of the company is 2.5%. The company’s anticipated EPS for this year subject to an increase by a whopping 59.1%. This compares to the industry average EPS growth of 58.5%, as per Zacks. So, INT is another key bet that could be beneficial in the long-term.