Will Norwegian Cruise Line Stock Rally Further?

Will Norwegian Cruise Line Stock Rally Further?

Nortwegian Cruise Line stock (NYSE: NCLH), one of the largest cruise line operators, has fared very well recently, rising by almost 18% over the last month (21 trading days), compared to the broader S&P 500 which has gained about 4% over the same period. The stock also remains up by about 4% over the last week (five trading days). There are a couple of factors driving the recent gains. While the broader cruising sector was weighed down in early March by concerns about the Russian invasion of Ukraine and surging crude oil prices, WTI crude prices have cooled off considerably since then, falling from over $125 per barrel to around $95 as of last week, although they have risen a bit to $100 levels currently. Investors also appear to be looking beyond the current geopolitical issues and focusing once again on the massive pent-up demand for leisure cruising, which is likely to drive a strong summer sailing season. The Covid-19 threat also appears to be receding. U. S. Covid daily cases have fallen to roughly 30, 000 in recent weeks, from highs of over 900, 000 in January, and the cruising appears to have almost returned to normal with passages