Royal Caribbean (RCL) closed at $63.48 in the latest trading session, marking a +1.67% move from the prior day. This move outpaced the S&P 500’s daily gain of 0.4%. Elsewhere, the Dow gained 0.33%, while the tech-heavy Nasdaq lost 1.1%.
Coming into today, shares of the cruise operator had gained 14.23% in the past month. In that same time, the Consumer Discretionary sector gained 5.21%, while the S&P 500 lost 0.01%.
Wall Street will be looking for positivity from Royal Caribbean as it approaches its next earnings report date. The company is expected to report EPS of -$1.34, up 71.97% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.62 billion, up 167.12% from the prior-year quarter.
Any recent changes to analyst estimates for Royal Caribbean should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 has moved 1.69% higher. Royal Caribbean is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Royal Caribbean is holding a Forward P/E ratio of 21.14. This valuation marks a premium compared to its industry’s average Forward P/E of 20.35.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 82, which puts it in the top 33% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
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