Royal Caribbean (RCL) closed the most recent trading day at $286.96, moving -2.38% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 1.01%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.4%.
Heading into today, shares of the cruise operator had lost 5.94% over the past month, lagging the Consumer Discretionary sector's gain of 1.27% and the S&P 500's gain of 0.32%.
Investors will be eagerly watching for the performance of Royal Caribbean in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 28, 2026. The company's earnings per share (EPS) are projected to be $3.95, reflecting a 9.82% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.8 billion, reflecting a 5.82% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $17.29 per share and a revenue of $19.61 billion, representing changes of +10.55% and +9.36%, respectively, from the prior year.
Any recent changes to analyst estimates for Royal Caribbean should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 moved 0.11% higher. Royal Caribbean is currently a Zacks Rank #3 (Hold).
In terms of valuation, Royal Caribbean is currently trading at a Forward P/E ratio of 17. This denotes no noticeable deviation relative to the industry average Forward P/E of 17.
It's also important to note that RCL currently trades at a PEG ratio of 1.04. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.45.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 42% of all 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.
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).