Uber stock — along with cruise line names Royal Caribbean (RCL), Carnival (CCL), Norwegian Cruise Lines (NCLH), and Viking Holdings (VIK) — headline this week's analysis of ideas from a particular industry, as the stock market rally stumbled this past week.
All of the stock picks come from Investor's Business Daily's Leisure-Services industry group, which ranks a strong No. 27 out of the 197 groups IBD tracks. Historically, winning stocks are in the top 40 industry groups, so investors should focus their research on that section of the performance table.
The ranking for the Leisure-Services group has vastly improved from where it was three months ago, at No. 61. A stock's industry ranking is available on IBD Stock Checkup. The MarketSurge chart is another good resource. Further, the MarketSurge industry group analysis can provide a group's rankings over the past six months.
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Shares of Uber Technologies (UBER) are rapidly approaching a cup base's 97.72 buy point, per IBD MarketSurge. If the stock is able to break out, the 5% buy zone will run up to 102.61. Meanwhile, a potential handle would place the latest entry at 96.60.
On Aug. 6, Uber met second-quarter earnings forecasts and beat revenue estimates while announcing a $20 billion stock buyback. But Uber stock fell following an earnings call with analysts that focused on the company's strategy to compete against robotaxis from Alphabet (GOOGL)-owned Waymo and Tesla (TSLA).
Uber also offered a third-quarter outlook that exceeded expectations. Uber guided for gross bookings value of $49 billion at the midpoint of its range. Analysts were looking for total bookings of $47.5 billion for the September-ending period.
William Blair analyst Ralph Schackart reiterated an outperform call for Uber stock following the report.
Uber stock's decline after earnings is "likely the result of high expectations into the quarter, and perhaps investors were looking for more definitive answers on (autonomous vehicles), which is difficult to provide at this point, in our view, given AV is still nascent," Schackart said in a client note. "However, the business continues to perform well with strong momentum, and it continues to post strong growth at scale."
With the S&P 500 and Nasdaq still in uptrends, investors can buy stocks with 21-day ATRs of up to 8%, though they should be wary of being too concentrated in high-octane names.
Uber stock has an ATR of 3.06%.
As the stock market rally pulls back from its all-time highs, IBD recommends 60%-80% stock exposure under current conditions.
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Carnival stock is close to forming a flat base that will show a 31.01 entry. Shares are also pulling back to their 10-week line.
Elsewhere, cruise operator Norwegian has rebounded from big losses to form a deep cup with handle that offers a 27.10 buy point.
Norwegian reported mixed second-quarter results in late July, but reaffirmed its 2025 guidance. "Demand has rebounded across all three of our brands, with bookings now ahead of historical levels in recent months and continued strength in onboard spend," Chief Executive Harry Sommer said in the press release.
Finally, Royal Caribbean is bullishly rebounding from its 10-week line, placing the leader in a new buy area.
On July 29, Royal Caribbean reported better-than-expected earnings and sales for the second quarter and raised its full-year adjusted EPS guidance for 2025. But the company issued third-quarter guidance below estimates.
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Viking stock has tumbled this week in the wake of the company's second-quarter earnings report. The company posted second-quarter earnings early Tuesday that met the consensus estimate, as revenue ran ahead of forecasts. But the fast-growing cruise line, which features river cruises and round-the-world adventures, released year-ahead pricing data showing modest year-over-year increases.
"We delivered another quarter of great results, further underscoring the strength of our business model and of our core guest demographic," CEO Torstein Hagen said in the earnings statement.
Viking provided updates on bookings for its "core products," which include Viking River, Viking Ocean, Viking Expedition, and Viking Mississippi.
Viking President Leah Talactac highlighted "positive momentum," including 55% capacity already sold for 2026. That matches the same level of capacity presold for 2025 at the same time last year.
Advance bookings for 2026 total $3.883 billion, up 13% from a year ago. That incorporates a 9% increase in capacity and a 4% increase in payments per passenger cruise day to $866. The latter figure marks a sharp slowdown.
At the same time last year, Viking reported a 10% jump in advance payments per passenger cruise day for 2025 vs. the year-ago period.
Viking stock is pulling back to its important 10-week moving average. A strong rebound from that area would place the stock in a new buying area. However, a sharp breach of that level would trigger a sell signal. Meanwhile, the stock is still around the 20%-25% profit-taking zone from a 48.58 cup-with-handle entry.
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Follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on artificial intelligence stocks, other best stocks to buy and watch and the Dow Jones Industrial Average.
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