This Buy-Rated Travel Stock Keeps Cruising to New Highs

• Viking Holdings (VIK) shows strong technical momentum and hit a new 52-week high on July 15.
• The stock has a 100% technical “Buy” signal via Barchart.
• Shares are up more than 60% in the last year.  
• Fundamentals are robust and analyst sentiment is largely bullish on the cruise and expedition operator. 

Today’s Featured Stock:

Valued at $25.45 billion, Viking Holdings (VIK) operates a smaller fleet of global cruise ships, focusing on unique ocean and river cruises. It also offers expeditions, such as for polar exploration. 

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. VIK checks those boxes. Since the Trend Seeker signaled a buy on May 12, the stock has gained 26.07%.

VIK Price vs. Daily Moving Averages:

Barchart Technical Indicators for Viking:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Viking shares hit a new all-time high on July 15, touching $57.73 in morning trading.

• VIK has an 100% technical “Buy” signal.
• The stock recently traded at $57.45, above its 50-day moving average of $48.57.
• Viking has a Weighted Alpha of +61.43.
• The stock has gained 61% over the past year.
• VIK has its Trend Seeker “Buy” signal intact.
• Viking is trading above its 20, 50 and 100-day moving averages.
• The stock made 17 new highs and gained 23% in the last month.
• Relative Strength Index is at 80.37%.
• The technical support level is $56.19.

Don’t Forget the Fundamentals:

• $25.45 billion market cap.
• Trailing price-earnings ratio of 30.35x.
• Revenue is projected to grow 18.43% this year and another 13.36% next year.
• Earnings are estimated to increase 30.64% this year and increase an additional 25.00% next year.

Analyst and Investor Sentiment on Viking:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like Wall Street analysts are bullish, but some major advisory sites aren't.

• The Wall Street analysts tracked by Barchart issued nine “Strong Buy,” one “Moderate Buy,” and five “Hold” opinions on the stock.
• Value Line does not rate this stock.
• CFRA’s MarketScope rates the stock a “Buy.”
• Morningstar thinks the stock is 28% overvalued.
• 2,650 investors monitor the stock on Seeking Alpha, which rates the stock a “Strong Buy.”

The Bottom Line:

Viking currently has momentum and is hitting new highs.

I caution that VIK is volatile and speculative — use strict risk management and stop-loss strategies.

Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.