Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) might be the last recovery stock left to buy at a discount.
Our latest NCLH stock forecast shows this is not just the best of the cruise lines to own; it's got a lot of upside right now.
You see, everyone knows a recovery is coming. Investors have bid up prices on some stocks to astronomical levels in anticipation of the economy reopening. Live Nation Entertainment Inc. (NYSE: LYV), the concert promoter, trades higher now than it did before the pandemic started. After a year of nearly no revenue, investors are willing to pay a huge premium to get back into this company.
That means if you're looking for stocks to buy that could bounce higher on the recovery, you don't have many options left.
Fortunately, Norwegian Cruise stock is one of those opportunities.
Here's why we're so bullish - and our strategy for trading NCLH...
2021 NCLH Stock Forecast
More than 50% of Americans have at least one vaccine shot. Seventy percent could be vaccinated by July 4.
That's why cruise lines, some of the hardest-hit companies from the pandemic, are starting to ramp back up. Because of the tight quarters, an airborne virus can spread much more easily on a cruise ship. Plus, treatment is difficult aboard a ship, and sick passengers have to wait for port for care, where the virus can spread further.
But with nearly three-quarters of the population expected to be vaccinated this summer, Norwegian says it will sail from U.S. ports again starting in August.
That's helped push the stock up over 15% in little more than a week. But here's plenty of room for it to go higher.
Think about it this way. Shares are still down 45% since their January 2020 highs. If cruise bookings in August and into the fall are stronger than expected - and there's a lot of reason to think they will be - then these shares could soar higher.
As Money Morning's Andrew Keene says, "Buy Norwegian stock on any pullback."
That's a strategy that can amplify your gains, especially when everyone knows the stock is going to be more volatile than usual amid the uncertainty.
It might take a while for shares to get back up to their $60 a share peak again, but Andrew says "there's still lots of upside there, without the big downside plunges investors experienced over the past year."
The highest NCLH price prediction from Wall Street analysts is $38 a share by next year. That's a 15% gain from today's price.
But these analysts are being way too conservative. It may not hit $60 a share by next year, but it will do better than a 15% jump, especially if you're able to accumulate shares on dips.
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