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Royal Caribbean (RCL) Registers a Bigger Fall Than the Market: Important Facts to Note
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Royal Caribbean (RCL - Free Report) ended the recent trading session at $318.13, demonstrating a -1.4% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 0.24%.
The cruise operator's shares have seen an increase of 14.7% over the last month, surpassing the Consumer Discretionary sector's loss of 2.34% and the S&P 500's loss of 1.42%.
Market participants will be closely following the financial results of Royal Caribbean in its upcoming release. The company's earnings per share (EPS) are projected to be $3.91, reflecting a 10.73% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.81 billion, reflecting a 6.04% rise from the equivalent quarter last year.
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.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 past month, there's been no change in the Zacks Consensus EPS estimate. Royal Caribbean is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Royal Caribbean is holding a Forward P/E ratio of 18.68. This denotes a premium relative to the industry average Forward P/E of 16.8.
It is also worth noting that RCL currently has a PEG ratio of 1.13. 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. As of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 1.49.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 26% 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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Royal Caribbean (RCL) Registers a Bigger Fall Than the Market: Important Facts to Note
Royal Caribbean (RCL - Free Report) ended the recent trading session at $318.13, demonstrating a -1.4% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 0.24%.
The cruise operator's shares have seen an increase of 14.7% over the last month, surpassing the Consumer Discretionary sector's loss of 2.34% and the S&P 500's loss of 1.42%.
Market participants will be closely following the financial results of Royal Caribbean in its upcoming release. The company's earnings per share (EPS) are projected to be $3.91, reflecting a 10.73% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.81 billion, reflecting a 6.04% rise from the equivalent quarter last year.
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.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 past month, there's been no change in the Zacks Consensus EPS estimate. Royal Caribbean is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Royal Caribbean is holding a Forward P/E ratio of 18.68. This denotes a premium relative to the industry average Forward P/E of 16.8.
It is also worth noting that RCL currently has a PEG ratio of 1.13. 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. As of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 1.49.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 26% 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.