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

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Royal Caribbean (RCL - Free Report) closed at $37.59 in the latest trading session, marking a -0.82% move from the prior day. This change lagged the S&P 500's daily gain of 2.59%. Elsewhere, the Dow gained 2.66%, while the tech-heavy Nasdaq added 0.12%.

Heading into today, shares of the cruise operator had lost 7.56% over the past month, outpacing the Consumer Discretionary sector's loss of 13.09% and the S&P 500's loss of 9.22% in that time.

Royal Caribbean will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$1.88, up 61.71% from the prior-year quarter. 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. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate has moved 2.28% lower. Royal Caribbean is currently a Zacks Rank #3 (Hold).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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