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Royal Caribbean (RCL) Suffers a Larger Drop Than the General Market: Key Insights
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Royal Caribbean (RCL - Free Report) ended the recent trading session at $301.47, demonstrating a -3.63% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
The stock of cruise operator has risen by 26.55% in the past month, leading the Consumer Discretionary sector's gain of 2.1% and the S&P 500's gain of 1.56%.
Investors will be eagerly watching for the performance of Royal Caribbean in its upcoming earnings disclosure. The company is expected to report EPS of $3.91, down 10.73% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.81 billion, up 6.04% from the prior-year quarter.
RCL's full-year Zacks Consensus Estimates are calling for earnings of $17.27 per share and revenue of $19.63 billion. These results would represent year-over-year changes of +10.42% and +9.44%, respectively.
It is also important to note the recent changes to analyst estimates for Royal Caribbean. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. Currently, Royal Caribbean is carrying a Zacks Rank of #3 (Hold).
Investors should also note Royal Caribbean's current valuation metrics, including its Forward P/E ratio of 18.11. This signifies a premium in comparison to the average Forward P/E of 16.34 for its industry.
One should further note that RCL currently holds a PEG ratio of 1.1. 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. As the market closed yesterday, the Leisure and Recreation Services industry was having an average PEG ratio of 1.37.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 187, this industry ranks in the bottom 24% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Royal Caribbean (RCL) Suffers a Larger Drop Than the General Market: Key Insights
Royal Caribbean (RCL - Free Report) ended the recent trading session at $301.47, demonstrating a -3.63% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
The stock of cruise operator has risen by 26.55% in the past month, leading the Consumer Discretionary sector's gain of 2.1% and the S&P 500's gain of 1.56%.
Investors will be eagerly watching for the performance of Royal Caribbean in its upcoming earnings disclosure. The company is expected to report EPS of $3.91, down 10.73% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.81 billion, up 6.04% from the prior-year quarter.
RCL's full-year Zacks Consensus Estimates are calling for earnings of $17.27 per share and revenue of $19.63 billion. These results would represent year-over-year changes of +10.42% and +9.44%, respectively.
It is also important to note the recent changes to analyst estimates for Royal Caribbean. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% lower. Currently, Royal Caribbean is carrying a Zacks Rank of #3 (Hold).
Investors should also note Royal Caribbean's current valuation metrics, including its Forward P/E ratio of 18.11. This signifies a premium in comparison to the average Forward P/E of 16.34 for its industry.
One should further note that RCL currently holds a PEG ratio of 1.1. 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. As the market closed yesterday, the Leisure and Recreation Services industry was having an average PEG ratio of 1.37.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 187, this industry ranks in the bottom 24% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.