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Royal Caribbean (RCL) Suffers a Larger Drop Than the General Market: Key Insights
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In the latest trading session, Royal Caribbean (RCL - Free Report) closed at $259.38, marking a -1.94% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.48%. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 0.64%.
Shares of the cruise operator witnessed a loss of 13.89% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 3.74%, and the S&P 500's loss of 0.97%.
The investment community will be paying close attention to the earnings performance of Royal Caribbean in its upcoming release. The company's upcoming EPS is projected at $6.35, signifying a 10.43% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $5.57 billion, reflecting a 8.41% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.78 per share and a revenue of $19.58 billion, signifying shifts of +13.68% and +9.17%, respectively, from the last 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. As such, positive estimate revisions reflect analyst optimism about 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, 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, the Zacks Consensus EPS estimate has shifted 0.04% downward. Royal Caribbean currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Royal Caribbean is currently exchanging hands at a Forward P/E ratio of 14.87. This valuation marks a discount compared to its industry average Forward P/E of 15.74.
Meanwhile, RCL's PEG ratio is currently 0.95. 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. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.14.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 199, this industry ranks in the bottom 20% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Royal Caribbean (RCL) Suffers a Larger Drop Than the General Market: Key Insights
In the latest trading session, Royal Caribbean (RCL - Free Report) closed at $259.38, marking a -1.94% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.48%. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 0.64%.
Shares of the cruise operator witnessed a loss of 13.89% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 3.74%, and the S&P 500's loss of 0.97%.
The investment community will be paying close attention to the earnings performance of Royal Caribbean in its upcoming release. The company's upcoming EPS is projected at $6.35, signifying a 10.43% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $5.57 billion, reflecting a 8.41% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.78 per share and a revenue of $19.58 billion, signifying shifts of +13.68% and +9.17%, respectively, from the last 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. As such, positive estimate revisions reflect analyst optimism about 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, 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, the Zacks Consensus EPS estimate has shifted 0.04% downward. Royal Caribbean currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Royal Caribbean is currently exchanging hands at a Forward P/E ratio of 14.87. This valuation marks a discount compared to its industry average Forward P/E of 15.74.
Meanwhile, RCL's PEG ratio is currently 0.95. 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. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.14.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 199, this industry ranks in the bottom 20% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.