How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Royal Caribbean (RCL) ten years ago? It may not have been easy to hold on to RCL for all that time, but if you did, how much would your investment be worth today?
Royal Caribbean's Business In-Depth
With that in mind, let's take a look at Royal Caribbean's main business drivers.
Based in Miami and incorporated in 1985, Royal Caribbean Cruises is a cruise company. It owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. Additionally, it has a 50% investment in a joint venture with TUI AG, which operates the brand TUI Cruises.
The company’s cruise brands primarily serve the contemporary, premium and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments. These brands operate 64 ships. The ships operate on a selection of diverse itineraries worldwide that include roughly 1,000 destinations on all seven continents. As of Dec. 31, 2025, the company had $5.7 billion in customer deposits compared with $5.5 billion in the prior-year period.
The company reports revenues under the following segments: Passenger ticket revenues (69.8% of total revenues in 2025) and Onboard and other revenues (30.2%).
In the third quarter of 2022, the company unveiled a three-year financial performance initiative — the Trifecta Program — thereby articulating longer-term financial objectives. The program emphasizes financial coordinates, including Adjusted EBITDA per APCD, Adjusted EPS and ROIC. During the second-quarter of 2024, the company achieved its Trifecta financial goals 18 months ahead of schedule.
The company reiterated its commitment to its “Perfecta Performance Program,” targeting a 20% CAGR in adjusted EPS through 2027 and return on invested capital in the high teens. Royal Caribbean's formula of moderate capacity growth, disciplined cost control and sustained yield improvements is likely to support the same.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Royal Caribbean, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in February 2016 would be worth $4,466.57, or a gain of 346.66%, as of February 5, 2026, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 259.33% and the price of gold increased 304.18% over the same time frame in comparison.
Looking ahead, analysts are expecting more upside for RCL.
Shares of Royal Caribbean have outperformed the industry in the past year. The company reported fourth-quarter 2025 results, with adjusted earnings and revenues missing the Zacks Consensus Estimate. However, the top and bottom lines increased on a year-over-year basis. It has been benefiting from a strong demand environment and robust booking trends. Also, resilient pricing and healthy load factors across future sailings bode well. Royal Caribbean emphasized investing in the digital front, fleet expansion, private destination portfolio and guest experience to drive growth. However, increased fuel costs and an uncertain macroeconomic environment are a concern. Earnings estimates for 2026 have declined in the past 30 days, depicting analysts' concern regarding the stock's growth potential.
Shares have gained 8.67% over the past four weeks and there have been 7 higher earnings estimate revisions for fiscal 2026 compared to none lower. The consensus estimate has moved up as well.
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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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