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Why Royal Caribbean (RCL) Dipped More Than Broader Market Today

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Royal Caribbean (RCL - Free Report) ended the recent trading session at $82.08, demonstrating a -0.91% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.85%. On the other hand, the Dow registered a loss of 0.75%, and the technology-centric Nasdaq decreased by 0.96%.

Coming into today, shares of the cruise operator had lost 13.91% in the past month. In that same time, the Consumer Discretionary sector lost 5.75%, while the S&P 500 lost 3.02%.

Market participants will be closely following the financial results of Royal Caribbean in its upcoming release. The company plans to announce its earnings on October 26, 2023. It is anticipated that the company will report an EPS of $3.43, marking a 1219.23% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.02 billion, indicating a 34.46% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $6.10 per share and a revenue of $13.72 billion, demonstrating changes of +181.33% and +55.21%, respectively, from the preceding year.

Any recent changes to analyst estimates for Royal Caribbean should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.97% fall in the Zacks Consensus EPS estimate. At present, Royal Caribbean boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Royal Caribbean currently has a Forward P/E ratio of 13.59. This indicates a discount in contrast to its industry's Forward P/E of 16.83.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 141, which puts it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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