Cruise stocks have been riding a wave of strong headlines lately, with record bookings and rising passenger volumes pointing to a booming industry.
On the surface, at least, that’s true. Global passenger volumes reached new highs in 2025, according to the Cruise Lines International Association’s 2026 report. But the reality is a bit more nuanced.
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“It’s moderate demand,” says Patrick Scholes, lodging and leisure analyst at Truist Securities. Cruise lines operate in a high-fixed-cost business, meaning operators always want ships filled to capacity regardless of underlying demand. With more ships entering service — industry capacity is up roughly 6% this year, Scholes says — strong booking numbers are being helped by increased supply and more promotional activity.
“People want to sail, no doubt, but you also have a lot more cabins that have to be sold because you do not want to sail with empty cabins,” Scholes says.
In other words, ships may be full, but that doesn’t necessarily mean demand is surging.
Still, that doesn’t mean the investment case is falling apart. Cruises continue to offer a compelling value compared to land-based vacations, particularly for North American travelers heading to destinations like the Caribbean, according to Jaime Katz, a chartered financial analyst and senior equity analyst for Morningstar. That combination of affordability and convenience is helping keep demand steady.
“Our long-term model has pricing rising at a low-single-digit rate, as more onboard options support higher spend per passenger,” Katz says.
For investors, that creates a more balanced picture. The industry is no longer in a pure post-pandemic rebound, but it’s also not rolling over. Instead, performance is increasingly being driven by fundamentals: things like balance sheet strength, fleet quality and the ability to drive higher onboard spending.
What Determines the Best Cruise Stocks?
The importance of fundamentals in cruise line stocks makes it especially important for investors to look beyond headline demand and focus on what’s actually driving profitability. Balance sheet strength is a key starting point, particularly in an industry where many operators are still carrying elevated debt from the pandemic years. Companies with lower leverage and stronger cash flow are generally better positioned to weather slower demand or unexpected cost pressures.
Net Debt to EBITDA
The primary metric to look at is the ratio of net debt, or debt minus cash, to EBITDA, or earnings before interest, taxes, depreciation and amortization. In a healthy environment, historically cruise companies have targeted two to three times net debt to EBITDA, Scholes says. But today, some are pushing up to six times net debt to EBITDA, while others are running near zero.
Fuel Costs
Fuel costs are another major factor to watch. Cruise lines consume large amounts of fuel, and rising prices can quickly eat into margins, especially if companies are already relying on promotions to fill ships. Two months ago, fuel was typically 20% of an operator’s cost; today it’s probably closer to 30% with the recent price increases, Scholes says. The gridlock at the Strait of Hormuz as part of the Iran war has taken a toll on cruise companies’ bottom lines.
At the same time, broader economic conditions, from employment trends to consumer confidence, can influence travelers’ willingness to spend on discretionary trips. “Right now, with the stock market and housing market doing well, the upper end of the financial demographic is doing really well, whereas the middle or lower end is feeling more of a squeeze” from higher rents, and grocery and gas prices, Scholes says.
This is reflected in the relative performance of cruise lines that target each demographic. For example, Viking Holdings Ltd. (ticker: VIK), which targets affluent retirees, is riding that wave very well, Scholes says.
Onboard Spending
The other moneymaker for cruise lines is onboard spending, and they’ve been pushing these “incremental revenue opportunities” more in the past five to 10 years, Scholes says. “There’s a lot of upside on these ships between the casino, gift shops, the things you can do on the private islands, the drink packages and the dinner packages.”
P/E Ratio
Finally, when looking at cruise stocks, you should keep an eye on valuation multiples like the price-to-earnings, or P/E, ratio. How much are you paying per dollar of company earnings? A higher P/E could suggest you’re paying a premium price for the stock.
Overall, cruise lines with “better destination options and hardware seem to be valued at a higher premium,” Katz says.
With that in mind, here are seven of the best cruise stocks to buy in 2026 with key metrics (rounded):
| CRUISE STOCK | Net Debt to EBITDA | P/E |
| Carnival Corp. (CCL) | 5 | 12 |
| Royal Caribbean Cruises Ltd. (RCL) | 3 | 16 |
| Norwegian Cruise Line Holdings Ltd. (NCLH) | 7 | 15 |
| Viking Holdings Ltd. (VIK) | 1 | 32 |
| Lindblad Expeditions Holdings Inc. (LIND) | 3 | N/A |
| OneSpaWorld Holdings Ltd. (OSW) | 1 | 33 |
| Trip.com Group Ltd. (TCOM) | -2 | 8 |
Carnival Corp. (CCL)
Carnival is a solid middle-of-the-pack play that hasn’t matched Royal Caribbean’s flashy ships and private islands, but maintains strong cost control, Scholes says.
The company’s revenue and income have been steadily climbing since travel demand returned post-COVID. The start of 2026 saw record first-quarter revenue of $6.2 billion and adjusted net income of $275 million, exceeding guidance on both fronts despite the anticipated impact of higher fuel costs and unfavorable currency rates. This has led the company to increase its full-year guidance by nearly $150 million.
“We delivered an incredibly strong start to the year, achieving our highest level of bookings ever on strong demand that extended well into 2028 sailings,” CEO Josh Weinstein said in Carnival’s first-quarter news release. He also said Carnival remains “on track to deliver solid yield growth, continued cost discipline and $7 billion in adjusted EBITDA this year.”
Carnival’s balance sheet is fairly strong, with net debt to EBITDA of 4.6, suggesting a slightly higher debt load than Royal Caribbean. However, CCL stock is trading at a lower P/E of 11.5, so investors are also paying less per dollar of company earnings.
Royal Caribbean Cruises Ltd. (RCL)
Royal Caribbean has been the hot name, according to Scholes. Coming out of COVID, it “really proved itself as the industry leader in creativity and execution,” he says.
It has launched five new ships since the pandemic, increasing its capacity by nearly 27,000 passengers, and recently confirmed its plans for two more of its Icon Class ships, expected to arrive in 2029 and 2030. But capacity is meaningless unless you’re filling those cabins and encouraging onboard spending, says Scholes. The latter is where Royal Caribbean really shines.
New ships like the Star of the Seas (2025) and Icon of the Seas (2024) — the type of ships you see on commercials with on-board waterparks and Las Vegas-worthy shows — coupled with “excellent” advertising have enabled Royal Caribbean to start targeting a broader customer base, like those priced out of Disney cruises or tired of being nickel-and-dimed in Vegas, Scholes says.
These efforts have been paying off with total revenue of $4.5 billion in the first quarter of 2026, an 11% increase year over year. The company also reported better-than-expected earnings per share of $3.48, thanks to favorable revenue, lower costs and better joint ventures performance.
The company also sits comfortably at about three times net debt to EBITDA as of its first-quarter 2026 results. RCL stock has a P/E of 16.11, indicating investors are paying $16.11 for each dollar of company earnings.
Norwegian Cruise Line Holdings Ltd. (NCLH)
Norwegian sits somewhere between the industry’s biggest players and its more niche operators, offering a mix of scale and a slightly more premium feel without going fully luxury.
“Norwegian has been for investors an extremely frustrating stock because in theory it has the most potential upside to grow, but the upside keeps getting pushed out,” Scholes says. “It was pushed out so much that three months ago they pushed out their CEO.”
Part of the challenge comes down to the balance sheet. Norwegian took on a significant amount of debt during the pandemic, and while it’s making progress, leverage remains higher than some competitors. Its net debt to EBITDA sits around 7x. That can make the company more sensitive to rising costs — especially fuel — or any slowdown in demand.
At the same time, Norwegian still has room to improve. It reported strong first-quarter earnings, with a 10% increase in revenue year over year. However, it also lowered 2026 guidance. CEO John W. Chidsey says the company plans to continue focusing on managing costs and improving revenue.
The question is — and excuse the pun: “Can management turn the ship around?” Scholes says. “If they can, there’s tremendous upside.”
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Viking Holdings Ltd. (VIK)
Viking is the cost king of the seas, according to Scholes. The company has benefited from the wealth effect, which suggests people spend more as the value of their assets rises. This is particularly strong among retirees, whose sense of wealth is often tied to their portfolios or residence, Scholes says. And Viking, with its focus on luxury and culturally immersive trips for adults rather than mass-market offerings, is riding this wave very well, Scholes says.
What started as a four-vessel river fleet in 1997 has expanded to include more than 100 ships that travel across 21 rivers and five oceans to touch all seven continents. The company reported a nearly 22% increase in revenue between fiscal year 2024 and 2025. What really sets the company apart is its debt management. It boasts a net debt to EBITDA of just over 1.
The downside to Viking is the stock has a P/E of over 31.8. So investors are paying a premium price for this exceptional balance sheet. Still, if you’re looking to complement traditional cruise names with a more upscale, differentiated player and low debt level, Viking provides exposure to a part of the market that tends to hold up well when demand is strong.
Lindblad Expeditions Holdings Inc. (LIND)
If you’re willing to venture beyond traditional cruise lines, Lindblad offers exposure to a niche but growing corner of the industry.
The company specializes in expedition travel, offering smaller, more intimate voyages to remote destinations such as Antarctica, the Arctic and the Galapagos. These trips don’t come cheap, often running into the thousands — or even tens of thousands — per person. But they also attract a different kind of traveler, one more focused on immersive, destination-driven experiences than traditional cruise amenities, which can support stronger pricing and onboard spending compared to mass-market cruises.
Lindblad’s partnership with National Geographic also helps differentiate its brand. This has helped the company carve out a distinct position in the market that could be more defensible from competitors. It just reported its first-quarter 2026 earnings, which showed a strong start to the year. Revenue increased 16% year over year, driven largely by increases in its cruise segment, although land experiences also increased.
Investing in Lindblad isn’t without its risks, however. Its smaller scale and niche focus can lead to greater earnings volatility. It also doesn’t have the same financial flexibility as larger peers, making balance sheet strength an important factor to watch.
The company’s latest net debt to EBITDA is at a healthy 2.8, but this doesn’t mitigate the risks associated with its smaller size. And since the company isn’t yet profitable, there is no available P/E. Being unprofitable isn’t necessarily reason for concern, as profitability can be slow for a niche, growing company. However, it is certainly something to keep in mind.
OneSpaWorld Holdings Ltd. (OSW)
If you want to benefit from cruise demand without overexposing yourself to ticket price or fuel cost risks, a more indirect approach, such as through OneSpaWorld, may be best.
The company operates spas, fitness centers and beauty services onboard cruise ships and at destination resorts. In other words, its revenue is tied more to passenger spending than to filling cabins. As cruise lines push higher-ticket itineraries and attract more affluent travelers, that onboard spending can become an increasingly important profit driver and a tailwind for OneSpaWorld.
That business model also makes OneSpaWorld a bit different from the operators themselves. The company has lower capital expenditure than cruise operators since the latter typically pay for the building and upkeep of OneSpaWorld’s facilities. Instead, it benefits when ships are full and passengers are willing to spend once they’re onboard. As a Bahamian business, it also earns much of its revenue in low- or no-tax jurisdictions.
Of course, it’s not immune to industry cycles. If cruise demand slows, onboard spending can follow. But for investors who believe in the long-term growth of cruise travel, OneSpaWorld provides a less capital-intensive way to tap into that trend.
Trip.com Group Ltd. (TCOM)
Another way to get exposure to cruise lines without investing directly in a cruise line is through a company that helps consumers book their cruise line excursions.
As one of the world’s largest online travel agencies, Trip.com makes money by facilitating bookings for hotels, flights and packaged travel experiences, including cruises. Its commission-based model means it benefits from rising travel demand and higher booking volumes without taking on the capital intensity or operational risks of running ships.
That model has been working. The company posted strong revenue growth in its latest fiscal year, driven by resilient global travel demand. International reservations also surged for the year.
Diversification is also an advantage for Trip.com. The company isn’t tied to a single segment of the travel industry. Instead, it generates revenue across accommodations, transportation and packaged tours, allowing it to benefit from multiple parts of the travel ecosystem at once.
Of course, that broader exposure comes with its own risks. The business is still tied to broader economic trends, especially in China, where it does most of its business, so demand can shift fairly quickly if conditions weaken. But for investors who want a more globally diversified way to benefit from rising cruise and travel demand, Trip.com offers a compelling alternative or complement to pure-play cruise stocks.
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7 Best Cruise Stocks to Buy: CCL, RCL and More originally appeared on usnews.com
Update 05/08/26: This story was published at an earlier date and has been updated with new information.
