Royal Caribbean (RCL) ended the recent trading session at $288.08, demonstrating a +2.54% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 1.3%.
Heading into today, shares of the cruise operator had gained 4.55% over the past month, outpacing the Consumer Discretionary sector's gain of 0.17% and the S&P 500's gain of 1.13%.
Market participants will be closely following the financial results of Royal Caribbean in its upcoming release. The company plans to announce its earnings on July 28, 2026. The company's upcoming EPS is projected at $3.92, signifying a 10.50% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.81 billion, up 6.04% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.41 per share and revenue of $19.63 billion. These totals would mark changes of +11.32% and +9.44%, respectively, from 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% increase. Royal Caribbean is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Royal Caribbean's current valuation metrics, including its Forward P/E ratio of 16.14. This denotes no noticeable deviation relative to the industry average Forward P/E of 16.14.
One should further note that RCL currently holds a PEG ratio of 0.98. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. RCL's industry had an average PEG ratio of 1.52 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 177, this industry ranks in the bottom 29% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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).