Industry Overview - The cruise industry is experiencing volatility, with major operators seeing stock prices drop by 29%, 17%, and 35% in 2025 [1][2] - The trade war and inflationary pressures are impacting consumer sentiment and spending in the cruise sector [2] Carnival Corporation - Carnival is the largest cruise line operator by revenue and passenger volume, reporting a revenue increase of 8% to $5.81 billion for the quarter ending in February [3][4] - Despite being the weakest year-over-year growth since resuming operations post-pandemic, Carnival's revenue exceeded analyst expectations of $5.74 billion [4] - The company has posted seven consecutive quarters of double-digit percentage earnings surprises, with the latest fiscal Q1 2025 EPS beating estimates by 485% [5] - Carnival has $7.3 billion in customer deposits for future sailings, indicating strong booking trends [6] - The stock is trading at over 11 times trailing earnings, dropping to 9.4 times for the current year and 8.3 times for fiscal 2026, but carries over $25 billion in debt [7] Viking Holdings - Viking is a niche leader in river cruises, operating smaller luxury ships that cater to affluent customers, and has experienced only an 11% price pullback year to date [9][10] - The company has 88% of its 2025 capacity already booked, indicating a strong near-term outlook [11] - Viking trades at a premium, with valuations at 17 times this year's projected earnings and 13 times next year's estimates, while maintaining less than $5 billion in long-term debt [11] OneSpaWorld - OneSpaWorld operates spas on 199 cruise ships and has a unique position in the market, functioning as a global recruiter of certified treatment providers [12][13] - The company reported an 11% revenue increase in its latest quarter, with a 37% surge in operating profit [14] - OneSpaWorld trades at 17 times this year's earnings and 15 times next year's estimates, with less than $100 million in long-term debt, benefiting from an asset-light business model [14]
3 No-Brainer Cruise Line Stocks to Buy Right Now