Royal Caribbean (RCL) ended the recent trading session at $321.40, demonstrating a -2.54% change from the preceding day's closing price. This change lagged the S&P 500's 0.13% loss on the day. Elsewhere, the Dow saw a downswing of 0.27%, while the tech-heavy Nasdaq depreciated by 0.07%.
The stock of cruise operator has risen by 0.91% in the past month, lagging the Consumer Discretionary sector's gain of 1.44% and the S&P 500's gain of 2.71%.
Analysts and investors alike will be keeping a close eye on the performance of Royal Caribbean in its upcoming earnings disclosure. In that report, analysts expect Royal Caribbean to post earnings of $5.66 per share. This would mark year-over-year growth of 8.85%. At the same time, our most recent consensus estimate is projecting a revenue of $5.16 billion, reflecting a 5.69% rise from the equivalent quarter last year.
RCL's full-year Zacks Consensus Estimates are calling for earnings of $15.6 per share and revenue of $17.98 billion. These results would represent year-over-year changes of +32.2% and +9.07%, respectively.
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. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Royal Caribbean is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Royal Caribbean is currently trading at a Forward P/E ratio of 21.15. This represents a premium compared to its industry average Forward P/E of 20.62.
It is also worth noting that RCL currently has a PEG ratio of 0.93. 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 1.34 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 154, placing it within the bottom 38% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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