Royal Caribbean (RCL) ended the recent trading session at $268.58, demonstrating a -4.85% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.62%. Meanwhile, the Dow experienced a drop of 1.87%, and the technology-dominated Nasdaq saw a decrease of 1.98%.
Prior to today's trading, shares of the cruise operator had gained 9.35% outpaced the Consumer Discretionary sector's loss of 0.56% and the S&P 500's loss of 0.03%.
Market participants will be closely following the financial results of Royal Caribbean in its upcoming release. In that report, analysts expect Royal Caribbean to post earnings of $3.91 per share. This would mark a year-over-year decline of 10.73%. Our most recent consensus estimate is calling for quarterly revenue of $4.81 billion, up 6.04% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.27 per share and a revenue of $19.63 billion, representing changes of +10.42% and +9.44%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Royal Caribbean. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 0.12% lower. Royal Caribbean presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Royal Caribbean is presently trading at a Forward P/E ratio of 16.34. This signifies a premium in comparison to the average Forward P/E of 15.83 for its industry.
Investors should also note that RCL has a PEG ratio of 0.99 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Leisure and Recreation Services industry stood at 1.31 at the close of the market yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 193, positioning it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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).