In one of his recent investor suggestions, Jim Cramer highlighted the sector, which benefits from lower fuel prices i.e. the cruise lines. With the fuel prices starting to go down, Cramer rearranged his favorite stocks in the cruise line industry with Royal Caribbean Cruises Ltd (NYSE:RCL), Carnival Corporation (NYSE:CCL), and Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH) making into the list.

Royal Caribbean Cruises Ltd (NYSE:RCL) is Cramer’s favorite cruise line and RCL is by far the strongest one in the industry. Its shares trade at $67.29 but Cramer believes that the company deserves a premium multiple and might even rise up to $85 per share or even $100. Earlier, the company announced that it would sell its ship Celebrity Century to Exquisite Marine Ltd., although Royal Caribbean Cruises Ltd (NYSE:RCL) would continue operating the nearly 20 years old ship until April 2015.

Carnival Corporation (NYSE:CCL) comes at number two, which also happens to be the largest cruise operator, in Cramer’s favorite cruise line companies despite of its recent misfortunes. According to Cramer, cutting the operational costs and improvement in profit margins would help the company sail between $40 to $50 share prices in the upcoming months. Carnival Corporation (NYSE:CCL) reported its third quarter 2014 financial results last week with $4.9 billion in revenues and net GAAP income of $1.2 billion.

Cramer listed Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH) as his third favorite cruise line company because of its small yet elect traveler group. Cramer said that the company is improving its operational margins and profit but at the same time, it has a huge debt of $3.5 billion with only $63 million in cash. Earlier, Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH) announced to acquire Prestige Cruises International, Inc. (“Prestige”) for $3.025 billion to increase its upscale cruise segment strength.

This article has been written by Prakash Pandey.