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Are Investors Undervaluing Royal Caribbean Cruises (RCL) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Royal Caribbean Cruises (RCL - Free Report) . RCL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.77. This compares to its industry's average Forward P/E of 15.58. RCL's Forward P/E has been as high as 19.64 and as low as 10.16, with a median of 12.76, all within the past year.
Investors will also notice that RCL has a PEG ratio of 0.41. 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. RCL's industry currently sports an average PEG of 0.50. Within the past year, RCL's PEG has been as high as 0.49 and as low as 0.36, with a median of 0.44.
Finally, our model also underscores that RCL has a P/CF ratio of 11.02. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.61. Over the past 52 weeks, RCL's P/CF has been as high as 19.03 and as low as 9.08, with a median of 10.94.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Royal Caribbean Cruises is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RCL feels like a great value stock at the moment.
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Are Investors Undervaluing Royal Caribbean Cruises (RCL) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Royal Caribbean Cruises (RCL - Free Report) . RCL is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.77. This compares to its industry's average Forward P/E of 15.58. RCL's Forward P/E has been as high as 19.64 and as low as 10.16, with a median of 12.76, all within the past year.
Investors will also notice that RCL has a PEG ratio of 0.41. 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. RCL's industry currently sports an average PEG of 0.50. Within the past year, RCL's PEG has been as high as 0.49 and as low as 0.36, with a median of 0.44.
Finally, our model also underscores that RCL has a P/CF ratio of 11.02. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.61. Over the past 52 weeks, RCL's P/CF has been as high as 19.03 and as low as 9.08, with a median of 10.94.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Royal Caribbean Cruises is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RCL feels like a great value stock at the moment.