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Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

Zacks Equity Research
·2-min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

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Royal Caribbean (RCL)

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.

RCL sits at a Zacks Rank #1 (Strong Buy), holds a Value Style Score of B, and has a VGM Score of A. Compared to the Leisure and Recreation Services industry's P/E of 16.5X, shares of Royal Caribbean are trading at a forward P/E of 13.7X. RCL also has a PEG Ratio of 0.5, a Price/Cash Flow ratio of 11.5X, and a Price/Sales ratio of 2.6X.

A company's earnings performance is important for value investors as well. For fiscal 2024, eight analysts revised their earnings estimate higher in the last 60 days for RCL, while the Zacks Consensus Estimate has increased $1.10 to $11.09 per share. RCL also holds an average earnings surprise of 18.3%.

RCL should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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

To read this article on Zacks.com click here.

Zacks Investment Research