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Royal Caribbean (RCL) Advances While Market Declines: Some Information for Investors

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In the latest close session, Royal Caribbean (RCL - Free Report) was up +1.72% at $272.39. This move outpaced the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.51%.

The stock of cruise operator has risen by 12.32% in the past month, leading the Consumer Discretionary sector's loss of 0.1% and the S&P 500's gain of 0.45%.

The investment community will be closely monitoring the performance of Royal Caribbean in its forthcoming earnings report. The company's upcoming EPS is projected at $4.04, signifying a 25.86% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4.54 billion, up 10.44% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $15.42 per share and a revenue of $18.03 billion, signifying shifts of +30.68% and +9.36%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Royal Caribbean. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.35% higher. Currently, Royal Caribbean is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Royal Caribbean has a Forward P/E ratio of 17.37 right now. This represents a discount compared to its industry average Forward P/E of 19.84.

We can also see that RCL currently has a PEG ratio of 0.8. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.49.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 30% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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