Yahoo Finance Royal Caribbean (RCL) Beats Stock Market Upswing: What Investors Need to Know
Royal Caribbean (RCL) closed at $161.40 in the latest trading session, marking a +0.42% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq added 0.49%.
The cruise operator's shares have seen an increase of 7.06% over the last month, surpassing the Consumer Discretionary sector's gain of 2.11% and the S&P 500's gain of 3.22%.
The investment community will be closely monitoring the performance of Royal Caribbean in its forthcoming earnings report. On that day, Royal Caribbean is projected to report earnings of $2.76 per share, which would represent year-over-year growth of 51.65%. Simultaneously, our latest consensus estimate expects the revenue to be $4 billion, showing a 13.43% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.10 per share and revenue of $16.24 billion. These totals would mark changes of +63.96% and +16.82%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Royal Caribbean. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. Currently, Royal Caribbean is carrying a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Royal Caribbean is at present trading with a Forward P/E ratio of 14.48. This represents a discount compared to its industry's average Forward P/E of 16.43.
We can also see that RCL currently has a PEG ratio of 0.48. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 1.37.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 99, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
