Royal Caribbean (RCL) ended the recent trading session at $313.34, demonstrating a +2.32% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow gained 0.44%, while the tech-heavy Nasdaq lost 0.76%.
The cruise operator's shares have seen a decrease of 7.15% over the last month, not keeping up with the Consumer Discretionary sector's loss of 4.43% and the S&P 500's gain of 1.14%.
The investment community will be paying close attention to the earnings performance of Royal Caribbean in its upcoming release. The company is slated to reveal its earnings on October 28, 2025. The company is predicted to post an EPS of $5.66, indicating a 8.85% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $5.16 billion, showing a 5.68% escalation compared to the year-ago quarter.
RCL's full-year Zacks Consensus Estimates are calling for earnings of $15.64 per share and revenue of $17.98 billion. These results would represent year-over-year changes of +32.54% and +9.07%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Royal Caribbean. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, there's been a 0.14% rise 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 presently being traded at a Forward P/E ratio of 19.58. This signifies a discount in comparison to the average Forward P/E of 20.22 for its industry.
We can also see that RCL currently has a PEG ratio of 0.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.19 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 55, finds itself in the top 23% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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