Viking Stock Has Gained 254% Since Its IPO. Here's Whether That Run Is Anywhere Near Over.

In this economy, where wealthier individuals are thriving and the rest of us are feeling the pinch hard at the pump, the grocery store, and elsewhere, it is difficult to find consumer discretionary companies that are doing well.

That's because many average consumers don't have as much discretionary income as they used to for travel, dining, or splurging on anything beyond the necessities. And that, in turn, leads to lower sales for many consumer discretionary companies.

But if you look at luxury brands that cater to more affluent clientele, then you may find some good investment opportunities. That's because, according to a report by Moody's last September, the top 10% of earners made up 49% of all national consumption. That was the highest percentage since the Federal Reserve started tracking this data. And that was last year, before gas prices spiked and food prices rose due to the ongoing war with Iran.

Image source: Getty Images.

It has been a longer-term trend. According to the Minneapolis Fed, spending by the top 10% of earners has increased 62% from the third quarter of 2020 through the third quarter of 2025. That was a much higher increase than any other income group.

This trend is driving growth in the luxury and high-end service sectors of the economy -- and gains for stocks like Viking Holdings (NYSE: VIK).

Luxury cruising since IPO

You've may have seen their ads during the Sunday morning news and commentary shows -- the cruise ships sailing on the Rhine or the Danube past castles, medieval cities, and pastoral scenes. This provider of high-end cruises and vacation experiences has been thriving since it went public on May 1, 2024, at $24 per share.

Since then, Viking stock has been cruising along, up 20% year to date and 254% since its IPO, to trade at around $85 per share today. But should investors expect rougher waters ahead, or does Viking stock have more room to run?

Conditions and trends would indicate that more smooth sailing lies ahead.

In its most recent quarter, all of Viking's numbers were up, with revenue up 16% to $2.2 billion, net yield rising 6.2%, gross margin climbing 16.3%, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumping 18.2% year over year.

The 2027 season looks even better

Viking increased its operating capacity by 7% in 2026 and will increase it by 15% in 2027, adding new ships to its fleet. And it is filling up those cabins, with 96% of capacity sold for 2026 and 53% of capacity already sold for 2027. Advanced bookings for the 2026 season were 13% higher than the previous year, and advanced bookings for 2027 are even better, up 21% over 2026 at this same point.

Prices are up, too. Advanced bookings per passenger cruise day are $958 per passenger, up 10% from 2026.

These numbers bode well for a strong 2027 season. This is a particularly good time to buy Viking stock because shares have dipped about 7% over the past month, bringing its valuation down to a more reasonable 28 times earnings and 18 times forward earnings.

At this valuation, 82% of Wall Street analysts rate Viking stock a buy, with a median price target of $112 per share, a figure that would equate to a 35% upside.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Moody's and Viking. The Motley Fool has a disclosure policy.