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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.34, while its industry has an average P/E of 16.83. RCL's Forward P/E has been as high as 19.64 and as low as 10.16, with a median of 12.71, all within the past year.
Investors will also notice that RCL has a PEG ratio of 0.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RCL's industry currently sports an average PEG of 0.56. Within the past year, RCL's PEG has been as high as 0.49 and as low as 0.36, with a median of 0.44.
Finally, we should also recognize that RCL has a P/CF ratio of 11.71. 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 12.24. Over the past year, RCL's P/CF has been as high as 18.27 and as low as 9.08, with a median of 10.87.
Value investors will likely look at more than just these metrics, but the above data helps show that Royal Caribbean Cruises is likely undervalued currently. And when considering the strength of its earnings outlook, RCL sticks out at as one of the market's strongest value stocks.
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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.34, while its industry has an average P/E of 16.83. RCL's Forward P/E has been as high as 19.64 and as low as 10.16, with a median of 12.71, all within the past year.
Investors will also notice that RCL has a PEG ratio of 0.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. RCL's industry currently sports an average PEG of 0.56. Within the past year, RCL's PEG has been as high as 0.49 and as low as 0.36, with a median of 0.44.
Finally, we should also recognize that RCL has a P/CF ratio of 11.71. 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 12.24. Over the past year, RCL's P/CF has been as high as 18.27 and as low as 9.08, with a median of 10.87.
Value investors will likely look at more than just these metrics, but the above data helps show that Royal Caribbean Cruises is likely undervalued currently. And when considering the strength of its earnings outlook, RCL sticks out at as one of the market's strongest value stocks.