Royal Caribbean (RCL) ended the recent trading session at $228.94, demonstrating a -0.03% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 1.26%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 1.77%.
The cruise operator's stock has dropped by 8.81% in the past month, falling short of the Consumer Discretionary sector's loss of 4.19% and the S&P 500's loss of 2.82%.
The upcoming earnings release of Royal Caribbean will be of great interest to investors. On that day, Royal Caribbean is projected to report earnings of $1.49 per share, which would represent year-over-year growth of 19.2%. In the meantime, our current consensus estimate forecasts the revenue to be $3.77 billion, indicating a 13.2% growth compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for Royal Caribbean. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.29% higher. Royal Caribbean is currently sporting a Zacks Rank of #2 (Buy).
With respect to valuation, Royal Caribbean is currently being traded at a Forward P/E ratio of 15.88. For comparison, its industry has an average Forward P/E of 17.49, which means Royal Caribbean is trading at a discount to the group.
We can also see that RCL currently has a PEG ratio of 0.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RCL's industry had an average PEG ratio of 0.79 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
