We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Royal Caribbean (RCL) Stock Up 40% in 6 Months: More Room to Run?
Read MoreHide Full Article
Royal Caribbean Cruises Ltd. (RCL - Free Report) is poised to benefit from improvements in booking activities, fleet-expansion efforts and digital initiatives. Also, the emphasis on the optimization of distribution channels bodes well.
Shares of Royal Caribbean have surged 40.3% in the past three months compared with the industry’s 12.9% growth. An upward revision in earnings estimates for 2023 reflects analysts’ optimism regarding the company’s growth potential. In the past 60 days, the Zacks Consensus Estimate for fiscal 2023 earnings has moved up 11.6% to $3.27 per share.
Factors Driving Growth
Royal Caribbean has been benefitting from strong demand for cruising, relaxation in COVID-related protocols and acceleration in booking volumes. During the fourth quarter of 2022, booking volumes for 2023 sailings were up from 2019 levels. During the quarter, the company reported solid bookings with respect to North America sailings. The company stated that the cumulative booked position remains within historical ranges. It also reported a rise in pre-cruise onboard purchases (at higher prices) on a year-over-year basis. The company stated benefits from strong direct-to-consumer channels and digital engagement initiatives.
Image Source: Zacks Investment Research
Given the full fleet resumption and load factors (at approximately 95%), the company expects customer deposits to return to typical seasonality in the upcoming periods. In 2023, the company anticipates solid guest generation from the North America region.
On the supply front, the company is steadfast in increasing its capacity to meet rising demand. Moving into 2023, the company has three ships scheduled for delivery — Icon of the Seas, Celebrity Ascent and Silver Nova. The company anticipates the additions to boost its capacity by approximately 14% from 2019 levels. The company anticipates the ship to be significantly accretive to its key financial metrics.
Royal Caribbean continues using digital tools for marketing, product development and enhancing the consumer experience. The initiative plays a vital role in supporting the enhancement of customer preference, engagement, cruise frequency, guest experience and spending. The company has introduced new technological capabilities under its Project Excalibur. It has also rolled out a smartphone app to increase convenience and better serve guests. In addition to industry-wide trends, several unique factors are boosting the company’s numbers. Streaming WiFi, expanded onboard offerings, customized destination experiences and other ship upgrades are also paying off. The company emphasizes on enhancing its e-commerce and pre-cruise capabilities and optimizing its distribution channels to drive growth.
During the fourth quarter of 2022, the company reported early consumer engagement, with about 60% purchasing onboard experiences before the sailings. This represents double-digit growth in penetration and much higher revenue (related to pre-cruise purchases) from 2019 levels. The company focuses on new innovative ships and onboard experiences to boost its offering and deliver superior yields and margins.
The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 108.4% and 217.5%, respectively, from the year-ago period’s estimated levels.
Hilton Grand Vacations currently sports a Zacks Rank #1. HGV has a trailing four-quarter earnings surprise of 12.1%, on average. Shares of HGV have declined 20% in the past year.
The Zacks Consensus Estimate for HGV’s 2023 sales and EPS indicates a rise of 7.1% and 10.8%, respectively, from the year-ago period’s levels.
Crocs carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 21.8%, on average. Shares of Crocs have increased 54.9% in the past year.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates a rise of 12.5% and 2.5%, respectively, from the year-ago period’s levels.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Royal Caribbean (RCL) Stock Up 40% in 6 Months: More Room to Run?
Royal Caribbean Cruises Ltd. (RCL - Free Report) is poised to benefit from improvements in booking activities, fleet-expansion efforts and digital initiatives. Also, the emphasis on the optimization of distribution channels bodes well.
Shares of Royal Caribbean have surged 40.3% in the past three months compared with the industry’s 12.9% growth. An upward revision in earnings estimates for 2023 reflects analysts’ optimism regarding the company’s growth potential. In the past 60 days, the Zacks Consensus Estimate for fiscal 2023 earnings has moved up 11.6% to $3.27 per share.
Factors Driving Growth
Royal Caribbean has been benefitting from strong demand for cruising, relaxation in COVID-related protocols and acceleration in booking volumes. During the fourth quarter of 2022, booking volumes for 2023 sailings were up from 2019 levels. During the quarter, the company reported solid bookings with respect to North America sailings. The company stated that the cumulative booked position remains within historical ranges. It also reported a rise in pre-cruise onboard purchases (at higher prices) on a year-over-year basis. The company stated benefits from strong direct-to-consumer channels and digital engagement initiatives.
Image Source: Zacks Investment Research
Given the full fleet resumption and load factors (at approximately 95%), the company expects customer deposits to return to typical seasonality in the upcoming periods. In 2023, the company anticipates solid guest generation from the North America region.
On the supply front, the company is steadfast in increasing its capacity to meet rising demand. Moving into 2023, the company has three ships scheduled for delivery — Icon of the Seas, Celebrity Ascent and Silver Nova. The company anticipates the additions to boost its capacity by approximately 14% from 2019 levels. The company anticipates the ship to be significantly accretive to its key financial metrics.
Royal Caribbean continues using digital tools for marketing, product development and enhancing the consumer experience. The initiative plays a vital role in supporting the enhancement of customer preference, engagement, cruise frequency, guest experience and spending. The company has introduced new technological capabilities under its Project Excalibur. It has also rolled out a smartphone app to increase convenience and better serve guests. In addition to industry-wide trends, several unique factors are boosting the company’s numbers. Streaming WiFi, expanded onboard offerings, customized destination experiences and other ship upgrades are also paying off. The company emphasizes on enhancing its e-commerce and pre-cruise capabilities and optimizing its distribution channels to drive growth.
During the fourth quarter of 2022, the company reported early consumer engagement, with about 60% purchasing onboard experiences before the sailings. This represents double-digit growth in penetration and much higher revenue (related to pre-cruise purchases) from 2019 levels. The company focuses on new innovative ships and onboard experiences to boost its offering and deliver superior yields and margins.
Other Key Picks
Some other top-ranked stocks in the Zacks Consumer Discretionary sector are Las Vegas Sands Corp. (LVS - Free Report) , Hilton Grand Vacations Inc. (HGV - Free Report) and Crocs, Inc. (CROX - Free Report) .
Las Vegas Sands sports a Zacks Rank #1 (Strong Buy). LVS has a long-term earnings growth rate of 2.5%. The stock has increased 39.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 108.4% and 217.5%, respectively, from the year-ago period’s estimated levels.
Hilton Grand Vacations currently sports a Zacks Rank #1. HGV has a trailing four-quarter earnings surprise of 12.1%, on average. Shares of HGV have declined 20% in the past year.
The Zacks Consensus Estimate for HGV’s 2023 sales and EPS indicates a rise of 7.1% and 10.8%, respectively, from the year-ago period’s levels.
Crocs carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 21.8%, on average. Shares of Crocs have increased 54.9% in the past year.
The Zacks Consensus Estimate for CROX’s 2023 sales and EPS indicates a rise of 12.5% and 2.5%, respectively, from the year-ago period’s levels.