Core Viewpoint - Parnassus Mid Cap Growth Fund's second quarter 2025 performance was below the benchmark, with a return of 13.29% compared to the Russell Midcap Growth Index's 18.20% [1] Fund Performance - The Fund's stock selection in the Industrials and Information Technology sectors negatively impacted its performance, while holdings in the Financials sector contributed positively [1] Company Focus: Royal Caribbean Cruises Ltd. - Royal Caribbean Cruises Ltd. (NYSE:RCL) is highlighted as a key investment within the Consumer Discretionary sector, with a one-month return of -10.88% and a 52-week gain of 78.34% [2][3] - As of September 24, 2025, Royal Caribbean's stock closed at $327.03 per share, with a market capitalization of $88.83 billion [2] - The cruise industry is viewed as attractive due to favorable demographic shifts, and Royal Caribbean is seen as a high-quality operator due to its newer, larger ships and private island destinations, which support pricing power [3] Hedge Fund Interest - Royal Caribbean Cruises Ltd. was held by 43 hedge fund portfolios at the end of the second quarter, a decrease from 57 in the previous quarter [4]

Core Insights - Celebrity Cruises is launching its inaugural season of river vacations, opening to the public on September 25, 2025, following high demand for Priority Booking Access which sold out in six minutes [2][3]. Company Overview - Celebrity Cruises offers premium vacation experiences across a fleet of ocean and river ships, covering over 300 destinations in more than 70 countries [5][6]. - The company is part of the Royal Caribbean Group and has been an industry pioneer for over 35 years [6]. Product Offering - The new Celebrity River Cruises will feature innovative ships designed for a seamless vacation experience, combining the sophistication of ocean ships with European charm [3][7]. - The ships will include unique features such as revolutionary open decks for 360-degree views, cantilevered dining pods, and an infinity-edge plunge pool [7]. - Guests can choose from five boutique stateroom categories and enjoy eight restaurants and bars, providing a variety of dining options [7]. Itinerary and Experience - In 2027, Celebrity River Cruises will offer 33 seven-night sailings on the Rhine and Danube rivers, allowing guests to explore multiple ports per day and experience local culture and cuisine [7].

Group 1 - Royal Caribbean Cruises Ltd. (NYSE:RCL) is viewed positively by Jim Cramer, who emphasizes that the cruise sector's performance is more related to value than employment rates [1] - Cramer notes that despite a price target cut for Royal Caribbean, he maintains a favorable outlook, highlighting the cruise experience as a great value compared to hotel stays [1] - The company operates global cruise services through its brands, including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises [2] Group 2 - There is a suggestion that while RCL has investment potential, certain AI stocks may offer greater upside and less downside risk [3] - The article hints at the existence of undervalued AI stocks that could benefit from current economic trends, although this is not directly related to RCL [3]

Group 1 - Royal Caribbean Group has announced a long-term framework agreement with Meyer Turku, securing rights to build at the yard for the next decade [1] - This agreement positions Royal Caribbean Group as a leader in redefining the future of vacations [1] - The collaboration with Meyer Turku is expected to enhance Royal Caribbean Group's operational capabilities in shipbuilding [1]

Core Insights - The current market presents a challenge for investors seeking safe places to allocate new capital, as the S&P 500 is experiencing record highs and significant rallies [1] - There are still opportunities to find relatively inexpensive stocks with above-average growth potential, particularly within the S&P 500 [2] Stock Selection - A screen identified 104 S&P 500 stocks with above-average growth and below-average price multiples, narrowing down to 86 after excluding energy and materials sectors [3][4] - T-Mobile is highlighted for its expected 19.4% earnings growth next year, trading at just over 18 times next year's earnings [4] - Royal Caribbean and Expedia are noted as strong travel stocks, with Expedia projected to grow earnings by 18% next year while trading at 13 times earnings, significantly cheaper than Booking Holdings [5] - Dollar Tree is identified as a consumer staples stock with a 15% growth rate, trading at less than 15 times next year's earnings, making it a favorable option [6] Financial Sector Opportunities - The financial sector is experiencing favorable conditions, with 34 of the 86 identified stocks coming from this sector [7] - Capital One Financial is projected to have nearly 14% earnings growth next year, trading at roughly 11 times next year's earnings [8] - American Express is expected to grow earnings by 12.6% next year, trading at less than 20 times earnings, which is cheaper than the overall S&P [9] - Citigroup is highlighted for its strong recovery under CEO Jane Fraser, with expected growth of 28% next year while trading at just 10.5 times earnings [10] - Keycorp, a regional bank, is expected to grow at 22% next year, trading at just under 11 times next year's earnings [11] Other Notable Stocks - Charles Schwab is recognized as a strong retail brokerage, while Apollo is noted for its leadership in private equity and private credit with projected earnings growth of 19% [12][13] - Insight, a biopharma company, stands out in the healthcare sector with expected earnings growth of 19% and trading at just under 12 times next year's earnings [14] - Caterpillar is noted for its strong performance, with an expected 18% earnings growth and trading at 22 times next year's earnings [15] - Dell Technologies is mentioned as a core player in AI infrastructure, while BXP, a real estate company, has rebounded after trimming its dividend to focus on growth projects [18][19] - Energy, a utility company, is highlighted for its growth potential due to infrastructure projects, including a $10 billion data center by Meta [20]

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Core Viewpoint - Royal Caribbean Cruises Ltd. has announced a public offering of $1.5 billion in senior unsecured notes with a 5.375% interest rate, maturing on January 15, 2036, to finance the delivery of Celebrity Xcel and to manage existing debt [1][2]. Group 1: Offering Details - The company is pricing a registered public offering of $1.5 billion aggregate principal amount of senior unsecured notes [1]. - The notes are expected to be issued around October 1, 2025, pending customary closing conditions [1]. - The offering is made under an automatic shelf registration statement filed with the SEC on February 29, 2024 [3]. Group 2: Use of Proceeds - The net proceeds from the sale of the notes will be used to finance the delivery of Celebrity Xcel and to redeem or refinance existing indebtedness, including amounts under revolving credit facilities [2]. Group 3: Management and Underwriters - BofA Securities, Goldman Sachs, and Morgan Stanley are acting as lead book-running managers for the offering [2].

Core Viewpoint - Royal Caribbean Cruises Ltd. has initiated a public offering of senior unsecured notes to finance the delivery of Celebrity Xcel and to manage existing debt obligations [1][2]. Financing and Use of Proceeds - The net proceeds from the notes will be used primarily for the delivery of Celebrity Xcel, instead of utilizing the existing export credit agency facility. Remaining proceeds will be allocated to redeem, refinance, or repurchase existing indebtedness, including amounts under revolving credit facilities [2]. Offering Details - The notes offering is conducted under an automatic shelf registration statement filed with the SEC on February 29, 2024, which became effective upon filing. Investors are encouraged to read the prospectus and related documents for comprehensive information [3]. Contact Information for Prospectus - Copies of the prospectus and related documents can be obtained from BofA Securities, Goldman Sachs, and Morgan Stanley, with specific contact details provided for each [4]. Company Overview - Royal Caribbean Group operates a global fleet of 68 ships across five brands, serving millions of guests annually. The company focuses on delivering responsible vacations and has a history of innovation in leisure travel [9].

Core Viewpoint - Shares of Royal Caribbean have nearly doubled in the past year, indicating strong market performance and potential for continued growth [1] Company Summary - Royal Caribbean's stock has shown significant appreciation, nearly doubling in value over the past year, suggesting investor confidence and positive market sentiment [1] - The company is positioned favorably in the cruise industry, with ongoing developments that may enhance its attractiveness to investors [1]

Core Viewpoint - The cruise industry is experiencing strong growth due to increased consumer spending on travel, the value offered by cruise vacations, and the expansion of capacity and features by cruise companies [2][5][6]. Industry Overview - The cruise industry is adding measured capacity and maintaining strong pricing trends, operating at or above full capacity due to high demand for cruise vacations [4][5]. - The demographic trends favor the cruise industry, with younger people and larger families increasingly participating in cruises [5][6]. - The cruise experience is positioned as an ideal multi-generational family vacation option, appealing to a wide range of age groups [6]. Company Insights - Royal Caribbean (RCL) is identified as the industry leader, with successful land-based destinations like Perfect Day at CocoCay and upcoming projects such as CocoCay Mexico and the Royal Beach Club in Nassau [8][9]. - Price targets for key cruise companies include Carnival at $38, Norwegian at $38, and RCL at $415, indicating bullish sentiment towards these stocks [7][10]. Investment Strategy - A bullish trading strategy is suggested for RCL, involving a call vertical option strategy that allows for cost offset while maintaining upside potential [12][13]. - The proposed trade involves buying a 330 strike call and selling a 370 strike call, with a break-even point set at approximately $343.80, which is just over 3% above the current share price [14][17].