Key Points
- CNBC’s Jim Cramer said Viking Holdings’ nearly 20% pullback has created an attractive opportunity to buy what he considers the best cruise stock in the market.
- He said strong 2026 and 2027 bookings outweigh concerns about European river disruptions, while Viking’s affluent customer base and premium positioning support the long-term story.
CNBC’s Jim Cramer said Monday that a pullback in Viking Holdings shares has opened up an attractive entry point for investors waiting to buy the high-flying cruise stock. “I think it’s crazy that people have been selling this thing,” the ” Mad Money ” host said. “I’m telling you to buy the stock into its recent weakness.” Viking is known for its river cruises but also has ocean voyages. Viking shares have fallen nearly 20% from their Aug. 5 all-time high of $108. The sell-off reflects broader pressure on cruise stocks from higher oil prices and geopolitical uncertainty, as well as Viking-specific concerns. Historically low water levels on the Danube and Rhine rivers have forced Viking to modify some itineraries. In response, the company is issuing vouchers to certain affected passengers, creating costs that will extend into 2027 and 2028 as they are redeemed. Cramer said investors are putting too much emphasis on those temporary disruptions when the underlying business remains strong. “I think they’re fantastic and the stock is absolutely worth owning,” he argued, citing the company’s strong bookings and premium customer base. “What can I say? Buy the dip,” he advised. Viking topped Wall Street’s earnings and revenue expectations in its second-quarter report on Aug. 19. Cramer said the company’s forward bookings were even more encouraging. As of Aug. 9, Viking sold 96% of its core capacity for 2026. For 2027, it had already sold 53% of capacity, with $4.71 billion in advance bookings — 21% more than it had for 2026 at the same point last year. “These are all tremendous numbers,” Cramer said. He also supports Viking’s decision to compensate passengers affected by the river disruptions, viewing the expense as an investment in preserving the customer loyalty that has helped differentiate the brand. Viking caters primarily to affluent, older travelers and offers an extensive portfolio of river cruises, which sets it apart from more mass-market competitors. Cramer said that upscale customer base should also make the company more resilient if inflation and higher energy prices weigh on discretionary spending. The sell-off has brought Viking’s valuation down to roughly 22 times the next 12 months’ earnings per share estimates. While that remains a hefty premium compared to other major cruise lines, Cramer said it is warranted given Viking’s superior growth and profitability profile and strong balance sheet. Cramer has backed Viking since shortly after its May 2024 initial public offering , when shares debuted more than up 8% to just over $26. After a run that eventually took the stock to an intraday all-time high of $110 earlier this month, the “Mad Money” host said the latest decline looks appealing. Sign up now for the CNBC Investing Club to follow Jim Cramer’s every move in the market. Disclaimer Questions for Cramer? Call Cramer: 1-800-743-CNBC Want to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – Instagram Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com
