Cruising can be a lot of fun and consumers have been increasingly turning to the vacation option. That trend is unlikely to change over the long term, but there's an important wrinkle here that investors shouldn't ignore when looking at industry leaders Carnival Corp. (NYSE: CCL) and Royal Caribbean Cruises (NYSE: RCL). Read this before you buy either of these stocks.

Carnival's stock has experienced a dramatic rise of around 85% over the past year. Royal Caribbean shares have done even better, up more than 120%. For comparison, the S&P 500 index has advanced roughly 20% over the same span, which most investors would consider a very compelling performance. The two cruise lines put the market's gain to shame.

CCL data by YCharts.

Continue reading

Source Fool.com