Royal Caribbean (RCL) closed the most recent trading day at $352.84, moving +1.23% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.78%. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 0.61%.
Heading into today, shares of the cruise operator had gained 24.27% over the past month, outpacing the Consumer Discretionary sector's gain of 4.9% and the S&P 500's gain of 5.88%.
Analysts and investors alike will be keeping a close eye on the performance of Royal Caribbean in its upcoming earnings disclosure. The company's earnings report is set to go public on July 29, 2025. The company is predicted to post an EPS of $4.07, indicating a 26.79% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $4.55 billion, up 10.69% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $15.5 per share and a revenue of $18.06 billion, demonstrating changes of +31.36% and +9.55%, respectively, from the preceding 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.54% higher. At present, Royal Caribbean boasts a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Royal Caribbean has a Forward P/E ratio of 22.49 right now. This represents a premium compared to its industry average Forward P/E of 22.38.
We can also see that RCL currently has a PEG ratio of 1.03. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.87.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 38% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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