Sunday, March 08, 2015

Smooth Sailing for Cruising Stocks

The first quarter of the year is the time when most people make reservations for their spring and summer cruises. With all the bookings taking place, cruise lines may be reporting favorable earnings. Plus, cruise traveling will be opening up with Cuba. Fortunately, there are a few ways that investors can climb aboard this industry.

Royal Caribbean Cruises Ltd. (RCL) owns Royal Caribbean International and Celebrity Cruises, along with Pullmantur S.A. in Europe and Latin America. The stock has a price to earnings ratio of 23, and a forward P/E of 13. Earnings for the latest quarter ended December 31 skyrocketed by an incredible 1,464% on a slight drop in revenues. The dividend payout rate is 1.5%.

Carnival Corp. (CCL), based in Miami and London, is one of the world's largest cruise lines in the world. The ships operate out of North America, the UK, Germany and Italy. The lines include Carnival, Holland America, Princess, Seabourn, Windstar, AIDA, Costa, P&O, Cunard, Ocean Village, and Swan Hellenic. The stock trades at 28 times trailing earnings and 14 times forward earnings. Revenues went up by 1.7% for the latest reported quarter. It sports a yield of 2.3%.

Hopefully, these stocks won't be too choppy. If you like interesting stock lists like this, check out the lists at

Disclosure: Author didn't own any of the above at the time the article was written.


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