Royal Caribbean (RCL) Declines More Than Market: Some Information for Investors
Royal Caribbean (RCL) closed the latest trading day at $177.41, indicating a -1.24% change from the previous session's end. This change lagged the S&P 500's daily loss of 0.19%. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.04%.
The cruise operator's stock has climbed by 6.28% in the past month, exceeding the Consumer Discretionary sector's gain of 3.53% and the S&P 500's gain of 1.95%.
Analysts and investors alike will be keeping a close eye on the performance of Royal Caribbean in its upcoming earnings disclosure. The company is forecasted to report an EPS of $5.02, showcasing a 30.39% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $4.84 billion, indicating a 16.29% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.59 per share and a revenue of $16.41 billion, indicating changes of +71.2% and +18.1%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.1% higher. At present, Royal Caribbean boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Royal Caribbean is presently trading at a Forward P/E ratio of 15.51. This represents a discount compared to its industry's average Forward P/E of 18.34.
We can also see that RCL currently has a PEG ratio of 0.52. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.02 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 31% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report