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Royal Caribbean (RCL) Stock Falls Amid Market Uptick: What Investors Need to Know
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In the latest trading session, Royal Caribbean (RCL - Free Report) closed at $307.89, marking a -2.18% move from the previous day. This change lagged the S&P 500's 0.58% gain on the day.
The cruise operator's shares have seen a decrease of 8.85% over the last month, not keeping up with the Consumer Discretionary sector's loss of 2.97% and the S&P 500's gain of 3.68%.
The upcoming earnings release of Royal Caribbean will be of great interest to investors. The company is expected to report EPS of $5.65, up 8.65% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $5.16 billion, showing a 5.64% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $15.63 per share and a revenue of $17.98 billion, demonstrating changes of +32.46% and +9.05%, respectively, from the preceding year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% higher. Currently, Royal Caribbean is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Royal Caribbean is currently being traded at a Forward P/E ratio of 20.14. This denotes a discount relative to the industry average Forward P/E of 21.48.
Also, we should mention that RCL has a PEG ratio of 0.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.2 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Royal Caribbean (RCL) Stock Falls Amid Market Uptick: What Investors Need to Know
In the latest trading session, Royal Caribbean (RCL - Free Report) closed at $307.89, marking a -2.18% move from the previous day. This change lagged the S&P 500's 0.58% gain on the day.
The cruise operator's shares have seen a decrease of 8.85% over the last month, not keeping up with the Consumer Discretionary sector's loss of 2.97% and the S&P 500's gain of 3.68%.
The upcoming earnings release of Royal Caribbean will be of great interest to investors. The company is expected to report EPS of $5.65, up 8.65% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $5.16 billion, showing a 5.64% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $15.63 per share and a revenue of $17.98 billion, demonstrating changes of +32.46% and +9.05%, respectively, from the preceding year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% higher. Currently, Royal Caribbean is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Royal Caribbean is currently being traded at a Forward P/E ratio of 20.14. This denotes a discount relative to the industry average Forward P/E of 21.48.
Also, we should mention that RCL has a PEG ratio of 0.88. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.2 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.