2 Cruise Line Stocks to Buy, Even in Today's Market Environment

Investors have turned on cruise line stocks in recent weeks. Fuel costs are a major input for these companies, and a fuel price spike has almost certainly squeezed the margins for the cruise lines.

Nonetheless, despite uncertainty in the economy, bookings have been at record levels, indicating that they will not have trouble filling cabins even if the companies pass on the higher fuel costs. Considering these conditions and the lower stock prices, these two companies are best positioned to prosper amid these challenging conditions.

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1. Royal Caribbean

Royal Caribbean (NYSE: RCL) is the second-largest cruise line by passenger count. However, it has differentiated itself from its larger, budget-friendly rival, Carnival Corp., by offering what some describe as a "premium-lite" experience. This makes its customer base less sensitive to downturns.

Additionally, it stood out as the first to offer unusual activities on a cruise ship such as ice skating and rock-climbing walls. In an industry that defines 100% occupancy as two people per cabin, Royal Caribbean reported 110% occupancy in 2025. That has prompted it to build more ships. To that end, it launched one last year and plans to add three more ships by 2028.

That occupancy allows it to fill cabins with less discounting, and with that, 2025 revenue grew by 8% yearly. Also, since costs and expenses did not grow as fast, the company's net income of $4.3 billion rose by 48% over the same period.

Furthermore, Royal Caribbean reportedly hedged 60% of its fuel costs, which cushions the impact of the price hikes. With that, its stock has fallen by around 20% since February, and with a P/E ratio of 18, its valuation is near the lows for the year. That price could attract bargain hunters to a proven business that is unlikely to be sunk by challenging conditions.

2. Viking

Viking (NYSE: VIK) has stood out with an upscale experience that is the antithesis of other cruise lines. It sails smaller ships geared toward higher-end customers. This allows it to host river cruises not feasible for larger lines, carving out a niche for the company.

These ships also trade the frills of their larger rivals for a focus on education and experiences. The cruise line is also adults-only and explicitly limits cabins to two passengers. With this approach, it claims 4% of industry revenue despite being less than 1% of the passenger volume.

Despite these limitations, it boasted a 95% occupancy rate in 2025. Thanks to this success, it has 103 ships, with several on order through 2034, including 16 ocean ships.

Because of this rising popularity, revenue surged 22% higher in 2025. Also, like Royal Caribbean, Viking limited cost and expense growth, meaning its $1.1 billion in net income was far above the $153 million earned in 2024.

Such results continue to wow investors, so much so that the stock has steadily risen since its May 2024 initial public offering and trades near 52-week highs.

Additionally, its recent P/E ratio of 33 is only slightly above the S&P 500 average of 29. Given its aggressive growth, it can likely justify that premium, even under current business conditions.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Viking. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.