Yahoo Finance Royal Caribbean (RCL) Outperforms Broader Market: What You Need to Know
Royal Caribbean (RCL) closed the most recent trading day at $151.48, moving +1.58% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.25%. At the same time, the Dow added 0.15%, and the tech-heavy Nasdaq gained 0.03%.
The the stock of cruise operator has risen by 0.96% in the past month, leading the Consumer Discretionary sector's gain of 0.82% and undershooting the S&P 500's gain of 3.34%.
Market participants will be closely following the financial results of Royal Caribbean in its upcoming release. In that report, analysts expect Royal Caribbean to post earnings of $2.76 per share. This would mark year-over-year growth of 51.65%. In the meantime, our current consensus estimate forecasts the revenue to be $4 billion, indicating a 13.43% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.09 per share and a revenue of $16.24 billion, indicating changes of +63.81% and +16.82%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Royal Caribbean. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Royal Caribbean holds a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Royal Caribbean is presently being traded at a Forward P/E ratio of 13.45. This represents a discount compared to its industry's average Forward P/E of 17.04.
It is also worth noting that RCL currently has a PEG ratio of 0.45. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.4.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 83, positioning it in the top 33% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
