In the latest close session, Royal Caribbean (RCL) was down 5.8% at $265.95. The stock fell short of the S&P 500, which registered a gain of 0.26% for the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.36%.
The cruise operator's stock has climbed by 4.75% in the past month, falling short of the Consumer Discretionary sector's gain of 4.83% and the S&P 500's gain of 5.98%.
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 April 30, 2026. The company's upcoming EPS is projected at $3.19, signifying a 17.71% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $4.44 billion, reflecting a 11.04% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $17.66 per share and a revenue of $19.72 billion, signifying shifts of +12.92% and +9.95%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Royal Caribbean. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 2.38% lower. Royal Caribbean is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note Royal Caribbean's current valuation metrics, including its Forward P/E ratio of 15.99. For comparison, its industry has an average Forward P/E of 16.68, which means Royal Caribbean is trading at a discount to the group.
We can additionally observe that RCL currently boasts a PEG ratio of 0.94. 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 currently had an average PEG ratio of 1.38 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 146, placing it within the bottom 41% of over 250 industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).