Royal Caribbean (RCL) ended the recent trading session at $313.14, demonstrating a +1.17% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 0.48%.
Heading into today, shares of the cruise operator had gained 20.45% over the past month, outpacing the Consumer Discretionary sector's gain of 5.55% and the S&P 500's gain of 4.27%.
Analysts and investors alike will be keeping a close eye on the performance of Royal Caribbean in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.04, signifying a 25.86% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $4.54 billion, indicating a 10.44% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $15.42 per share and a revenue of $18.03 billion, demonstrating changes of +30.68% and +9.36%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Royal Caribbean. 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.35% increase. Right now, Royal Caribbean possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Royal Caribbean is currently trading at a Forward P/E ratio of 20.08. This represents a discount compared to its industry average Forward P/E of 20.36.
Investors should also note that RCL has a PEG ratio of 0.92 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.84.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 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.
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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