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Are Investors Undervaluing Royal Caribbean Cruises (RCL) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Royal Caribbean Cruises (RCL - Free Report) . RCL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.82. This compares to its industry's average Forward P/E of 17.84. Over the past year, RCL's Forward P/E has been as high as 19.64 and as low as 10.16, with a median of 12.77.
Investors will also notice that RCL has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RCL's industry currently sports an average PEG of 0.58. Over the last 12 months, RCL's PEG has been as high as 0.49 and as low as 0.36, with a median of 0.44.
Finally, we should also recognize that RCL has a P/CF ratio of 12.28. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.94. Within the past 12 months, RCL's P/CF has been as high as 14.75 and as low as 9.08, with a median of 10.90.
These are just a handful of the figures considered in Royal Caribbean Cruises's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RCL is an impressive value stock right now.
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Are Investors Undervaluing Royal Caribbean Cruises (RCL) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Royal Caribbean Cruises (RCL - Free Report) . RCL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.82. This compares to its industry's average Forward P/E of 17.84. Over the past year, RCL's Forward P/E has been as high as 19.64 and as low as 10.16, with a median of 12.77.
Investors will also notice that RCL has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RCL's industry currently sports an average PEG of 0.58. Over the last 12 months, RCL's PEG has been as high as 0.49 and as low as 0.36, with a median of 0.44.
Finally, we should also recognize that RCL has a P/CF ratio of 12.28. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.94. Within the past 12 months, RCL's P/CF has been as high as 14.75 and as low as 9.08, with a median of 10.90.
These are just a handful of the figures considered in Royal Caribbean Cruises's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that RCL is an impressive value stock right now.