Will Royal Caribbean Group (RCL) Benefit from Demographic Shifts?

Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Growth Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund (Investor Shares) returned 13.29% (net of fees) in the quarter, compared to the Russell Midcap Growth Index’s 18.20% return. Stock selection in the Industrials and Information Technology sectors negatively impacted the performance, while holdings in the Financials sector contributed. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Parnassus Mid Cap Growth Fund highlighted stocks such as Royal Caribbean Cruises Ltd. (NYSE:RCL). Royal Caribbean Cruises Ltd. (NYSE:RCL) is a global cruise company operator. The one-month return of Royal Caribbean Cruises Ltd. (NYSE:RCL) was -10.88%, and its shares gained 78.34% of their value over the last 52 weeks. On September 24, 2025, Royal Caribbean Cruises Ltd. (NYSE:RCL) stock closed at $327.03 per share, with a market capitalization of $88.83 billion.

Parnassus Mid Cap Growth Fund stated the following regarding Royal Caribbean Cruises Ltd. (NYSE:RCL) in its second quarter 2025 investor letter:

"Within the Consumer Discretionary sector, we invested in Royal Caribbean Cruises Ltd. (NYSE:RCL). We find the cruise industry attractive due to favorable demographic shifts, and we believe Royal Caribbean is positioned well because it is differentiating itself through new, larger ships and private island destinations. We believe that Royal Caribbean is the highest-quality major cruise operator, differentiating itself with newer and larger ships and private island destinations that support pricing power. The company also stands to benefit from demographic shifts that favor the cruise industry."

Royal Caribbean Cruises Ltd. (NYSE:RCL) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 43 hedge fund portfolios held Royal Caribbean Cruises Ltd. (NYSE:RCL) at the end of the second quarter, compared to 57 in the previous quarter. While we acknowledge the potential of Royal Caribbean Cruises Ltd. (NYSE:RCL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Royal Caribbean Cruises Ltd. (NYSE:RCL) and shared the list of stocks Jim Cramer talked about. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.