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Royal Caribbean (RCL) Dips More Than Broader Markets: What You Should Know

Royal Caribbean (RCL) closed the most recent trading day at $63.88, moving -0.16% from the previous trading session. This change lagged the S&P 500's 0.02% loss on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 5.44%.

Prior to today's trading, shares of the cruise operator had gained 30.84% over the past month. This has outpaced the Consumer Discretionary sector's gain of 13.51% and the S&P 500's gain of 4.57% in that time.

Investors will be hoping for strength from Royal Caribbean as it approaches its next earnings release, which is expected to be February 7, 2023. On that day, Royal Caribbean is projected to report earnings of -$1.35 per share, which would represent year-over-year growth of 71.76%. Meanwhile, our latest consensus estimate is calling for revenue of $2.62 billion, up 167.12% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Royal Caribbean. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.85% lower within the past month. Royal Caribbean is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Royal Caribbean is holding a Forward P/E ratio of 21.85. Its industry sports an average Forward P/E of 20.48, so we one might conclude that Royal Caribbean is trading at a premium comparatively.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 75, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow RCL in the coming trading sessions, be sure to utilize Zacks.com.

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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report

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