We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Cruise Line Stocks in Focus on Expected Demand Strength in 2026
Read MoreHide Full Article
Key Takeaways
RCL is seeing solid bookings and onboard spending, while investing in digital tools and new ships.
CCL is about two-thirds booked at historically high prices and momentum expected into fiscal 2026.
NCLH forecasts net yield growth of 3.5% - 4%, supported by data-driven personalization efforts.
The cruise industry is benefiting from strong demand for cruising and increased booking volumes. The industry is benefiting from solid bookings concerning North American and European sailings. Also, strong pricing (on closer-in-demand) and solid onboard spending bode well for the industry.
AAA projected the number of Americans set to travel on ocean cruises in 2026 would reach a record high of 21.7 million. This is an increase on 4.5% year over year. Other positives include repeat cruisers, and interest in diverse experiences like premium, luxury, river and themed sailings. Cruise operators are investing in new hardware, including mega-ships and private destinations, to acquire new customers.
At this stage, it will be prudent to closely focus on cruise line operators. A few such operators have strong near-term upside left. Three among them are Royal Caribbean Cruises Ltd. (RCL - Free Report) , Carnival Corp. & plc (CCL - Free Report) and Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) . Each of our picks currently carries a Zacks Rank # 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our three picks in the past month.
Image Source: Zacks Investment Research
Royal Caribbean Cruises Ltd.
Royal Caribbean Cruises is benefiting from a strong demand environment and robust booking trends. Also, strength in consumer spending onboard and pre-cruise purchases bodes well. RCL emphasized investing in the digital front, fleet expansion, private destination portfolio and guest experience to drive growth.
RCL is increasingly integrating artificial intelligence and data analytics into its commercial and digital platforms to enhance guest experiences and improve revenue optimization. Looking ahead, RCL plans to debut Legend of the Seas in 2026. In addition, RCL recently entered a long-term agreement with Meyer Turku, securing shipbuilding slots through the next decade.
The agreement includes a confirmed order for Icon 5, scheduled for delivery in 2028, and an option for a seventh Icon Class ship, underscoring RCL’s commitment to continuous innovation and disciplined expansion.
Strong Earnings Estimate Revisions for RCL
Royal Caribbean Cruises has an expected revenue and earnings growth rate of 9.3% and 14.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.01% over the last 60 days.
The average price target of brokerage firms represents an increase of 9.6% from the last closing price of $301.13. The brokerage target price is currently in the range of $270-$415. This indicates an upside of 37.5% and a downside of 10.3%.
Carnival Corp. & plc
Carnival is benefiting from sustained demand strength, increased booking volumes and the destination strategy. During fiscal 2025, yields increased 5.5%, exceeding management’s guidance by nearly 1.5%.
CCL is currently approximately two-thirds booked, in line with the prior year but at historically high prices across both North America and Europe. Looking ahead, CCL expects this momentum to carry into fiscal 2026, with management pointing to another year of double-digit earnings growth and return on invested capital projected to exceed 13.5%, nearing a 20-year high.
With a stronger financial foundation and a diversified portfolio of established brands and destinations, CCL remains focused on sustaining yield improvements and supporting earnings visibility over the medium term.
Solid Earnings Estimate Revisions for CCL
Carnival has an expected revenue and earnings growth rate of 4.2% and 12.4%, respectively, for the current year (ending November 2026). The Zacks Consensus Estimate for the current year’s earnings has increased 5.4% over the last 30 days.
The average price target of brokerage firms represents an increase of 17.7% from the last closing price of $31.61. The brokerage target price is currently in the range of $31-$46. This indicates an upside of 45.5% and a downside of 1.9%.
Norwegian Cruise Line Holdings Ltd.
Norwegian Cruise Line is benefiting from strong consumer demand and a solid booking environment. Also, a focus on strategic investments in destination enhancements, including new amenities at Great Stirrup Cay and luxury fleet upgrades, to enhance future yield and guest experience, bodes well.
NCLH forecasts net yield growth of approximately 3.5% to 4% in the fourth quarter, balancing higher occupancy levels with modest pricing adjustments. NCLH is leveraging data analytics to personalize pre-cruise interactions and boost ancillary revenues.
Impressive Earnings Estimate Revisions for NCLH
Norwegian Cruise Line has an expected revenue and earnings growth rate of 10.2% and 26.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.8% over the last 30 days.
The average price target of brokerage firms represents an increase of 10.7% from the last closing price of $26.95. The brokerage target price is currently in the range of $19-$40. This indicates an upside of 48.4% and a downside of 29.6%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Cruise Line Stocks in Focus on Expected Demand Strength in 2026
Key Takeaways
The cruise industry is benefiting from strong demand for cruising and increased booking volumes. The industry is benefiting from solid bookings concerning North American and European sailings. Also, strong pricing (on closer-in-demand) and solid onboard spending bode well for the industry.
AAA projected the number of Americans set to travel on ocean cruises in 2026 would reach a record high of 21.7 million. This is an increase on 4.5% year over year. Other positives include repeat cruisers, and interest in diverse experiences like premium, luxury, river and themed sailings. Cruise operators are investing in new hardware, including mega-ships and private destinations, to acquire new customers.
At this stage, it will be prudent to closely focus on cruise line operators. A few such operators have strong near-term upside left. Three among them are Royal Caribbean Cruises Ltd. (RCL - Free Report) , Carnival Corp. & plc (CCL - Free Report) and Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) . Each of our picks currently carries a Zacks Rank # 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our three picks in the past month.
Image Source: Zacks Investment Research
Royal Caribbean Cruises Ltd.
Royal Caribbean Cruises is benefiting from a strong demand environment and robust booking trends. Also, strength in consumer spending onboard and pre-cruise purchases bodes well. RCL emphasized investing in the digital front, fleet expansion, private destination portfolio and guest experience to drive growth.
RCL is increasingly integrating artificial intelligence and data analytics into its commercial and digital platforms to enhance guest experiences and improve revenue optimization. Looking ahead, RCL plans to debut Legend of the Seas in 2026. In addition, RCL recently entered a long-term agreement with Meyer Turku, securing shipbuilding slots through the next decade.
The agreement includes a confirmed order for Icon 5, scheduled for delivery in 2028, and an option for a seventh Icon Class ship, underscoring RCL’s commitment to continuous innovation and disciplined expansion.
Strong Earnings Estimate Revisions for RCL
Royal Caribbean Cruises has an expected revenue and earnings growth rate of 9.3% and 14.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.01% over the last 60 days.
The average price target of brokerage firms represents an increase of 9.6% from the last closing price of $301.13. The brokerage target price is currently in the range of $270-$415. This indicates an upside of 37.5% and a downside of 10.3%.
Carnival Corp. & plc
Carnival is benefiting from sustained demand strength, increased booking volumes and the destination strategy. During fiscal 2025, yields increased 5.5%, exceeding management’s guidance by nearly 1.5%.
CCL is currently approximately two-thirds booked, in line with the prior year but at historically high prices across both North America and Europe. Looking ahead, CCL expects this momentum to carry into fiscal 2026, with management pointing to another year of double-digit earnings growth and return on invested capital projected to exceed 13.5%, nearing a 20-year high.
With a stronger financial foundation and a diversified portfolio of established brands and destinations, CCL remains focused on sustaining yield improvements and supporting earnings visibility over the medium term.
Solid Earnings Estimate Revisions for CCL
Carnival has an expected revenue and earnings growth rate of 4.2% and 12.4%, respectively, for the current year (ending November 2026). The Zacks Consensus Estimate for the current year’s earnings has increased 5.4% over the last 30 days.
The average price target of brokerage firms represents an increase of 17.7% from the last closing price of $31.61. The brokerage target price is currently in the range of $31-$46. This indicates an upside of 45.5% and a downside of 1.9%.
Norwegian Cruise Line Holdings Ltd.
Norwegian Cruise Line is benefiting from strong consumer demand and a solid booking environment. Also, a focus on strategic investments in destination enhancements, including new amenities at Great Stirrup Cay and luxury fleet upgrades, to enhance future yield and guest experience, bodes well.
NCLH forecasts net yield growth of approximately 3.5% to 4% in the fourth quarter, balancing higher occupancy levels with modest pricing adjustments. NCLH is leveraging data analytics to personalize pre-cruise interactions and boost ancillary revenues.
Impressive Earnings Estimate Revisions for NCLH
Norwegian Cruise Line has an expected revenue and earnings growth rate of 10.2% and 26.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.8% over the last 30 days.
The average price target of brokerage firms represents an increase of 10.7% from the last closing price of $26.95. The brokerage target price is currently in the range of $19-$40. This indicates an upside of 48.4% and a downside of 29.6%.