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Royal Caribbean (RCL) Stock Dips While Market Gains: Key Facts

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Royal Caribbean (RCL - Free Report) ended the recent trading session at $164.62, demonstrating a -1.33% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 1.01%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq gained 1.13%.

Coming into today, shares of the cruise operator had gained 12.66% in the past month. In that same time, the Consumer Discretionary sector gained 2.54%, while the S&P 500 gained 2.5%.

The investment community will be paying close attention to the earnings performance of Royal Caribbean in its upcoming release. The company is expected to report EPS of $4.98, up 29.35% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $4.84 billion, indicating a 16.28% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.50 per share and a revenue of $16.41 billion, signifying shifts of +69.87% and +18.1%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Royal Caribbean. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.39% higher. Royal Caribbean currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Royal Caribbean is holding a Forward P/E ratio of 14.51. This expresses a discount compared to the average Forward P/E of 18.68 of its industry.

Investors should also note that RCL has a PEG ratio of 0.48 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Leisure and Recreation Services industry had an average PEG ratio of 1.06 as trading concluded yesterday.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 171, this industry ranks in the bottom 33% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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