If debt costs eat up all of cruise companies' profits, is there any reason to buy cruise stocks?
As trading starts to wind down for Tuesday, Aug. 16, shares of cruise line stocks are winding back up. As of 3:35 p.m. ET, Norwegian Cruise Line Holdings (NYSE: NCLH) stock is sporting a 3.2% gain, followed by Royal Caribbean (NYSE: RCL), which is rising 3.7%. Leading the whole pack higher, meanwhile, is industry bellwether Carnival (NYSE: CCL), up 4.6%.
Over the last few years, Cruise operators like Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) could hardly catch a break as the world seemingly went from one crisis into another. With the travel sector recovering, the ongoing military conflict and problematic macroeconomic conditions resulted in yet another negative quarter. While the stock rose on the news, this is likely more a result of external factors.