Royal Caribbean Cruises (RCL) and Norwegian Cruise Line (NCLH) shares are under pressure after reporting quarterly earnings. Goldman Sachs global investment research vice president Lizzie Dove sits down with Julie Hyman and Josh Lipton on Market Domination to discuss how to play cruise stocks.

"There was three main things that we learned — the first is that trends are accelerating. You look at Norwegian net yields went from 6% in the second quarter to 9% percent in the third quarter. So trends are getting better.

"Secondly, new-to-cruise is expanding, and that is key because it's category expansion, it's not about pent-up demand. And three, the long-term outlook was better, so we've heard about low to mid-single-digit net yield growth for next year. They're talking toward the higher end of that. So that was a really positive update," Dove tells Yahoo Finance.

Dove names Carnival Corporation (CCL) as her "top pick" in the space, saying, "The biggest piece is they have been doing a really good job, but there is a huge catch-up opportunity for Carnival."

She goes on to name growing new-to-cruise and returning European passenger bases as opportunities for Carnival

"They also have a lot of exposure to these new private islands. So they're building one called Celebration Key next year. That is a game changer. And finally, single biggest important thing that is underappreciated about Carnival is the [deleveraging] story," Dove says. "The debt to equity value creation, they're delevering by two turns in less than a year. And so you get that long only investor base more and more interested because the leverage is palatable now, and that's getting that stickier capital involved is really going to be key."

To watch more expert insights and analysis on the latest market action, check out more Market Domination here.

This post was written by Naomi Buchanan.