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Royal Caribbean (RCL) Outpaces Stock Market Gains: What You Should Know

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Royal Caribbean (RCL - Free Report) closed at $285.55 in the latest trading session, marking a +2.8% move from the prior day. This change outpaced the S&P 500's 0.55% gain on the day. Elsewhere, the Dow saw an upswing of 0.63%, while the tech-heavy Nasdaq appreciated by 0.91%.

Shares of the cruise operator witnessed a loss of 5.56% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 2.69%, and the S&P 500's gain of 0.71%.

Market participants will be closely following the financial results of Royal Caribbean in its upcoming release. The company plans to announce its earnings on January 29, 2026. The company is expected to report EPS of $2.8, up 71.78% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.27 billion, indicating a 13.4% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $15.64 per share and a revenue of $17.94 billion, indicating changes of +32.54% and 0%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for Royal Caribbean. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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 past month, the Zacks Consensus EPS estimate has moved 1.55% lower. Right now, Royal Caribbean possesses a Zacks Rank of #4 (Sell).

Looking at its valuation, Royal Caribbean is holding a Forward P/E ratio of 15.75. This denotes a discount relative to the industry average Forward P/E of 17.66.

One should further note that RCL currently holds a PEG ratio of 0.77. 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. RCL's industry had an average PEG ratio of 1.48 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow RCL in the coming trading sessions, be sure to utilize Zacks.com.


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