Royal Caribbean (RCL) closed at $287.22 in the latest trading session, marking a +3% move from the prior day. This change outpaced the S&P 500's 0.16% loss on the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
Heading into today, shares of the cruise operator had gained 10.28% over the past month, outpacing the Consumer Discretionary sector's loss of 2.67% and the S&P 500's loss of 0.21%.
The investment community will be closely monitoring the performance of Royal Caribbean in its forthcoming earnings report. The company is expected to report EPS of $2.8, up 71.78% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.27 billion, reflecting a 13.44% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.64 per share and a revenue of $17.95 billion, indicating changes of +32.54% and +8.86%, respectively, from the former year.
Any recent changes to analyst estimates for Royal Caribbean should also be noted by investors. Recent revisions tend to reflect the latest near-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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, the Zacks Consensus EPS estimate has moved 0.01% higher. Currently, Royal Caribbean is carrying a Zacks Rank of #3 (Hold).
Investors should also note Royal Caribbean's current valuation metrics, including its Forward P/E ratio of 17.83. This denotes a premium relative to the industry average Forward P/E of 17.54.
Investors should also note that RCL has a PEG ratio of 0.84 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Leisure and Recreation Services industry was having an average PEG ratio of 1.26.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 30% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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