Royal Caribbean (RCL) closed at $348.51 in the latest trading session, marking a +2.74% move from the prior day. This change outpaced the S&P 500's 0.54% gain on the day. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.74%.
Shares of the cruise operator have appreciated by 26.68% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 4.15%, and the S&P 500's gain of 4.2%.
Investors will be eagerly watching for the performance of Royal Caribbean in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 29, 2025. On that day, Royal Caribbean is projected to report earnings of $4.06 per share, which would represent year-over-year growth of 26.48%. In the meantime, our current consensus estimate forecasts the revenue to be $4.55 billion, indicating a 10.61% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $15.45 per share and revenue of $18.05 billion, which would represent changes of +30.93% and +9.49%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Royal Caribbean. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 0.22% rise in the Zacks Consensus EPS estimate. 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 21.96. This signifies a discount in comparison to the average Forward P/E of 22.34 for its industry.
We can additionally observe that RCL currently boasts a PEG ratio of 1.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Leisure and Recreation Services was holding an average PEG ratio of 1.89 at yesterday's closing price.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
