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Why Royal Caribbean (RCL) Dipped More Than Broader Market Today
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Royal Caribbean (RCL - Free Report) closed the most recent trading day at $282.32, moving -2.24% from the previous trading session. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.66%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Shares of the cruise operator have appreciated by 9.18% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 2.69%, and the S&P 500's gain of 1.4%.
Analysts and investors alike will be keeping a close eye on the performance of Royal Caribbean in its upcoming earnings disclosure. The company is forecasted to report an EPS of $6.36, showcasing a 10.61% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $5.58 billion, showing a 8.66% escalation compared to the year-ago quarter.
RCL's full-year Zacks Consensus Estimates are calling for earnings of $17.79 per share and revenue of $19.58 billion. These results would represent year-over-year changes of +13.75% and +9.15%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Royal Caribbean. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 shifted 0.01% upward. Royal Caribbean is currently a Zacks Rank #3 (Hold).
Digging into valuation, Royal Caribbean currently has a Forward P/E ratio of 16.24. This indicates a premium in contrast to its industry's Forward P/E of 15.68.
We can additionally observe that RCL currently boasts a PEG ratio of 1.02. 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 of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 1.16.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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Why Royal Caribbean (RCL) Dipped More Than Broader Market Today
Royal Caribbean (RCL - Free Report) closed the most recent trading day at $282.32, moving -2.24% from the previous trading session. This move lagged the S&P 500's daily loss of 0.22%. Meanwhile, the Dow lost 0.66%, and the Nasdaq, a tech-heavy index, lost 0.22%.
Shares of the cruise operator have appreciated by 9.18% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 2.69%, and the S&P 500's gain of 1.4%.
Analysts and investors alike will be keeping a close eye on the performance of Royal Caribbean in its upcoming earnings disclosure. The company is forecasted to report an EPS of $6.36, showcasing a 10.61% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $5.58 billion, showing a 8.66% escalation compared to the year-ago quarter.
RCL's full-year Zacks Consensus Estimates are calling for earnings of $17.79 per share and revenue of $19.58 billion. These results would represent year-over-year changes of +13.75% and +9.15%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Royal Caribbean. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 shifted 0.01% upward. Royal Caribbean is currently a Zacks Rank #3 (Hold).
Digging into valuation, Royal Caribbean currently has a Forward P/E ratio of 16.24. This indicates a premium in contrast to its industry's Forward P/E of 15.68.
We can additionally observe that RCL currently boasts a PEG ratio of 1.02. 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 of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 1.16.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 181, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.