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Is Royal Caribbean Cruises (RCL) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Royal Caribbean Cruises (RCL - Free Report) . RCL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.85. This compares to its industry's average Forward P/E of 17.52. Over the past year, RCL's Forward P/E has been as high as 23.88 and as low as 10.16, with a median of 14.85.
Finally, investors will want to recognize that RCL has a P/CF ratio of 10.40. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. RCL's P/CF compares to its industry's average P/CF of 19.78. Within the past 12 months, RCL's P/CF has been as high as 48.99 and as low as -32.96, with a median of 14.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Royal Caribbean Cruises is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RCL feels like a great value stock at the moment.
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Is Royal Caribbean Cruises (RCL) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Royal Caribbean Cruises (RCL - Free Report) . RCL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.85. This compares to its industry's average Forward P/E of 17.52. Over the past year, RCL's Forward P/E has been as high as 23.88 and as low as 10.16, with a median of 14.85.
Finally, investors will want to recognize that RCL has a P/CF ratio of 10.40. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. RCL's P/CF compares to its industry's average P/CF of 19.78. Within the past 12 months, RCL's P/CF has been as high as 48.99 and as low as -32.96, with a median of 14.75.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Royal Caribbean Cruises is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RCL feels like a great value stock at the moment.