Royal Caribbean (RCL) closed at $279.34 in the latest trading session, marking a +1.83% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.33%. On the other hand, the Dow registered a gain of 1.08%, and the technology-centric Nasdaq increased by 0.08%.
The cruise operator's shares have seen an increase of 8.03% over the last month, surpassing the Consumer Discretionary sector's loss of 3.52% and the S&P 500's gain of 1.41%.
The investment community will be paying close attention to the earnings performance of Royal Caribbean in its upcoming release. The company is slated to reveal its earnings on October 27, 2026. The company is predicted to post an EPS of $6.37, indicating a 10.78% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $5.59 billion, indicating a 8.7% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $17.79 per share and a revenue of $19.58 billion, demonstrating changes of +13.75% and +9.16%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Royal Caribbean. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. As of now, Royal Caribbean holds a Zacks Rank of #3 (Hold).
In terms of valuation, Royal Caribbean is presently being traded at a Forward P/E ratio of 15.42. This denotes a premium relative to the industry average Forward P/E of 15.37.
We can additionally observe that RCL currently boasts a PEG ratio of 0.97. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated 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 group has a Zacks Industry Rank of 85, putting it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).