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Royal Caribbean (RCL) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Royal Caribbean (RCL) closed at $60.83, marking a -0.57% move from the previous day. This change lagged the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 1.43%.

Investors will be hoping for strength from RCL as it approaches its next earnings release. On that day, RCL is projected to report earnings of -$4.43 per share, which would represent a year-over-year decline of 274.41%. Our most recent consensus estimate is calling for quarterly revenue of $83.59 million, down 97.02% from the year-ago period.

RCL's full-year Zacks Consensus Estimates are calling for earnings of -$12.88 per share and revenue of $3.64 billion. These results would represent year-over-year changes of -235.01% and -66.8%, respectively.

Investors should also note any recent changes to analyst estimates for RCL. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 300.31% lower. RCL is currently sporting a Zacks Rank of #4 (Sell).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% 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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