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Royal Caribbean (RCL) Moves 7.4% Higher: Will This Strength Last?

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Royal Caribbean (RCL - Free Report) shares rallied 7.4% in the last trading session to close at $279.7. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.2% loss over the past four weeks.

Shares of Royal Caribbean climbed after the company declared a $1.00 quarterly dividend payable Jan. 14, 2026, to shareholders of record on Dec. 26, 2025, and authorized a $2 billion stock buyback program.

This cruise operator is expected to post quarterly earnings of $2.80 per share in its upcoming report, which represents a year-over-year change of +71.8%. Revenues are expected to be $4.27 billion, up 13.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Royal Caribbean, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on RCL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Royal Caribbean is a member of the Zacks Leisure and Recreation Services industry. One other stock in the same industry, Carnival (CCL - Free Report) , finished the last trading session 5.9% higher at $27.84. CCL has returned -3.1% over the past month.

For Carnival, the consensus EPS estimate for the upcoming report has changed -8.5% over the past month to $0.25. This represents a change of +78.6% from what the company reported a year ago. Carnival currently has a Zacks Rank of #2 (Buy).


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