Royal Caribbean (RCL) closed the latest trading day at $217.24, indicating a -1.19% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.53%.
Shares of the cruise operator witnessed a loss of 9.93% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 4.73% and the S&P 500's loss of 4.03%.
Market participants will be closely following the financial results of Royal Caribbean in its upcoming release. It is anticipated that the company will report an EPS of $2.52, marking a 42.37% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4 billion, up 7.32% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.92 per share and a revenue of $17.97 billion, signifying shifts of +26.44% and +9%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Royal Caribbean. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.13% higher. At present, Royal Caribbean boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Royal Caribbean is currently exchanging hands at a Forward P/E ratio of 14.74. This valuation marks a discount compared to its industry's average Forward P/E of 18.63.
One should further note that RCL currently holds a PEG ratio of 0.75. 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. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.13 based on yesterday's closing prices.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 58, putting it in the top 24% of all 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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