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Royal Caribbean (RCL) Gains As Market Dips: What You Should Know

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In the latest trading session, Royal Caribbean (RCL - Free Report) closed at $47, marking a +0.51% move from the previous day. This change outpaced the S&P 500's 0.84% loss on the day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.15%.

Coming into today, shares of the cruise operator had gained 11.49% in the past month. In that same time, the Consumer Discretionary sector lost 11.36%, while the S&P 500 lost 10.24%.

Wall Street will be looking for positivity from Royal Caribbean as it approaches its next earnings report date. In that report, analysts expect Royal Caribbean to post earnings of $0.23 per share. This would mark year-over-year growth of 104.68%. Meanwhile, our latest consensus estimate is calling for revenue of $3 billion, up 557.56% from the prior-year quarter.

RCL's full-year Zacks Consensus Estimates are calling for earnings of -$7.03 per share and revenue of $8.98 billion. These results would represent year-over-year changes of +63.37% and +486.12%, respectively.

Any recent changes to analyst estimates for Royal Caribbean should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.64% lower within the past month. Royal Caribbean is holding a Zacks Rank of #3 (Hold) right now.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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