Back to top

Image: Bigstock

Royal Caribbean (RCL) Stock Moves 0.42%: What You Should Know

Read MoreHide Full Article

The latest trading session saw Royal Caribbean (RCL - Free Report) ending at $245.17, denoting a +0.42% adjustment from its last day's close. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.12%.

The the stock of cruise operator has risen by 4.78% in the past month, lagging the Consumer Discretionary sector's gain of 5.75% and overreaching the S&P 500's gain of 1.27%.

The upcoming earnings release of Royal Caribbean will be of great interest to investors. The company is expected to report EPS of $1.49, up 19.2% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $3.77 billion, showing a 13.2% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.65 per share and a revenue of $16.49 billion, indicating changes of +72.08% and +18.67%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Royal Caribbean. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. As of now, Royal Caribbean holds a Zacks Rank of #2 (Buy).

In terms of valuation, Royal Caribbean is presently being traded at a Forward P/E ratio of 20.96. For comparison, its industry has an average Forward P/E of 22.57, which means Royal Caribbean is trading at a discount to the group.

It's also important to note that RCL currently trades at a PEG ratio of 0.64. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Leisure and Recreation Services industry currently had an average PEG ratio of 0.94 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 26, which puts it in the top 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Royal Caribbean Cruises Ltd. (RCL) - free report >>

Published in