Spending on travel has held up well in recent years, a trend that has supported strong growth for Royal Caribbean Cruises (RCL) and other cruise providers. The worlds consumers may be cutting back on some things, but demand for cruises remains solid, says Richard Moroney, editor of Dow Theory Forecast.

From 2009 through 2017, the number of ocean cruise passengers has increased at an annualized rate of 5.7%, according to the Cruise Lines International Association.

The count has risen every year during that seven year period, and the organization expects passenger counts to increase another 4.5% this year.

Royal Caribbean, which holds about a 25% share of the global cruise market, stands to benefit from the industrywide trends, as well some encouraging company-specific developments.

With Royal Caribbean shares fetching just 16 times expected 2017 profits, 27% below the median for hotel and cruise companies in the S&P 1500 Index, we like the price of this ticket. Royal Caribbean, which earns a Quadrix Overall score of 97 and yields 1.7%, is a Buy and a Long-Term Buy.

In April, Royal Caribbean reported better-than-expected profit growth and boosted its full-year guidance for earnings.

Among the takeaways from the March-quarter report were record bookings, a 4.4% decline in net cruise costs excluding fuel, better-than-expected net yields (cruise revenue divided by available passenger cruise days), and a $500 million share-buyback authorization.

Both occupancy rates and prices have increased from last year.

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Cruising for Profits: Royal Caribbean - Moneyshow.com (registration)