Group 1 - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum characteristics [3][4][5][6][7] Group 2 - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E and Price/Sales, appealing to value investors [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings and cash flow [5] - The Momentum Score assists investors in capitalizing on price trends, utilizing recent price changes and earnings estimate adjustments [6] Group 3 - The VGM Score combines the three Style Scores to identify stocks with the best overall value, growth, and momentum characteristics, serving as a strong indicator alongside the Zacks Rank [7] - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [8][9] Group 4 - Royal Caribbean Cruises (RCL) is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B, indicating a moderate investment potential [12] - RCL is highlighted as a growth investment opportunity, with a Growth Style Score of B and a projected year-over-year earnings growth of 30.8% for the current fiscal year, supported by upward revisions from analysts [13]

Core Insights - Royal Caribbean (RCL) has a strong track record of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 7.89% [1][5] - The company reported earnings of $2.53 per share for the most recent quarter, falling short of the expected $2.71, resulting in a surprise of 7.11% [2] - For the previous quarter, Royal Caribbean exceeded expectations by reporting $1.63 per share against a consensus estimate of $1.50, achieving a surprise of 8.67% [2] Earnings Estimates and Predictions - Recent changes in earnings estimates for Royal Caribbean have been favorable, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for an earnings beat [5][8] - The current Earnings ESP for Royal Caribbean stands at +1.25%, suggesting analysts have become more optimistic about the company's earnings prospects [8] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6][8] Importance of Earnings ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7] - A negative Earnings ESP reduces predictive power but does not necessarily indicate an earnings miss [8] - Monitoring a company's Earnings ESP prior to quarterly releases is crucial for increasing the likelihood of successful investment decisions [10]

Core Insights - Celebrity Xcel will introduce seven new elevated experiences designed to enhance guest enjoyment and create lasting memories [1][6] - The ship will feature innovative spaces such as the Celebrity Pool Club, Attic at The Club, and The Spa, each offering unique activities and relaxation options [1][3][4] Group 1: New Experiences - The Celebrity Pool Club will provide an all-day, all-night poolside experience with amenities like poolside chilled towels and private cabanas [1] - The Poolest Day EverSM will transform the pool area on sea days into a vibrant event with live music, games, and exclusive drinks [2] - Attic at The Club will be a 24/7 adults-oriented lounge featuring retro games and private event spaces for group activities [3] Group 2: Spa and Wellness - The Spa on Celebrity Xcel will include the first-ever Hydra RoomSM, offering a water-focused wellness experience with therapeutic benefits [4] - The new outdoor Vitamin D DeckSM will provide guests with a relaxing space to enjoy ocean views and complimentary beverages [4] Group 3: Retail and Community Engagement - The Celebrity Flagship store will serve as an interactive retail experience, allowing guests to engage with the brand and create personalized mementos [5] - The Xcel 'Dream Makers' program invites guests to participate in shaping new onboard experiences, influencing culinary and entertainment options [7] Group 4: Itineraries and Future Plans - Celebrity Xcel will begin its inaugural season from Fort Lauderdale in November, offering seven-night itineraries to various Caribbean destinations [8] - In Summer 2026, the ship will embark on its inaugural European season with journeys from Barcelona and Athens, including overnight stays in Madeira, Portugal [8]

Earnings Season Overview - The report previews the second quarter earnings season, focusing on hot stocks and their potential to maintain momentum [1][2] - Zacks Investment Research will provide ongoing coverage of earnings season through YouTube videos, podcasts, and social media updates [22][23][24] Featured Stocks and Analysis - **Costco:** Exhibits steady growth with mostly double-digit earnings increases year after year, but shares are struggling to break out; valuation is high at 54 times earnings [3][4][5] - **Palo Alto Networks:** Demonstrates consistent earnings growth with no misses in the last five years; shares are attempting to break out to new highs, up 103% year-to-date [6][7][8] - **Microsoft:** Shows a strong earnings surprise track record with only one miss; shares are up 182% year-to-date, reaching new all-time highs; earnings growth is expected through 2027; trading at 33 times earnings [9][10][11][12] - **Royal Caribbean:** Has a perfect earnings track record since 2022, with shares up 442% year-to-date; strong bookings for 2025 and 2026 are driving growth; trading at 22 times earnings [13][14][15][16][17][18] - **D-Wave Quantum:** Shares are up 92% year-to-date with a 60% beat last quarter; guidance is a key factor; earnings are not yet positive [18][19][20] Key Themes - Consistent earnings growth and positive earnings surprises are common features among the highlighted hot stocks [8] - Consumer spending remains strong, particularly in the travel sector, despite tariff concerns [13][15] - The performance of the stock market influences consumer confidence and spending habits, impacting sectors like cruise lines [15]

Core Viewpoint - The consumer's determination to travel is driving a significant increase in global air passenger traffic, with a 15% year-over-year growth in the first half of 2025, particularly strong in Asia-Pacific and Europe [1][2]. Group 1: Travel Market Dynamics - Despite a nearly 10% decline in the U.S. dollar, which typically increases the cost of international travel, strong wage growth in the U.S. is offsetting this effect, leading to robust demand for travel [2]. - The combination of increased income and pent-up demand for previously inaccessible international destinations is fueling the travel market [2]. Group 2: Company-Specific Insights Booking Holdings - Booking Holdings Inc. (NASDAQ: BKNG) is trading at over $5,600 per share, with a 12-month stock price forecast of $5,388.37, indicating a potential downside of 5.84% [4]. - The company reported earnings exceeding expectations by nearly 30% in its most recent quarter, showcasing its pricing power and impressive 86% gross margins, driven by artificial intelligence [5]. - Booking's strongest periods are typically in the second and third quarters, supported by demand for travel to Asia Pacific and Europe [5]. Marriott International - Marriott International (NYSE: MAR) has a current stock price of $280.08, with a 12-month forecast of $275.90, suggesting a downside of 1.49% [7]. - The company reported a global RevPAR increase of approximately 4% in Q1 2025, with international RevPAR up more than 6%, particularly strong in Asia Pacific [8]. - Marriott's diverse brand portfolio and expansion into luxury and upscale properties allow it to target less price-sensitive consumers [9]. Royal Caribbean - Royal Caribbean Cruises Ltd. (NYSE: RCL) has a current stock price of $334.10, with a 12-month forecast of $280.40, indicating a downside of 16.07% [11]. - The cruise industry is experiencing a recovery, with Royal Caribbean's stock up over 106% in the last 12 months and more than 40% in 2025 [12]. - The company has significantly reduced its debt, refinancing approximately $3 billion in short-term debt and repaying about $2.1 billion in principal, resulting in a debt-to-equity ratio of 2.21, which is more than 60% lower than its 2022 peak [13].

Core Insights - Royal Caribbean Cruises Ltd. is focusing on its loyalty program strategy to enhance guest engagement and drive additional revenues, with strong cruising demand expected to continue into 2025 [1][8] - Customer deposits reached $6.33 billion as of March 31, 2025, an increase from $5.5 billion in the previous year, indicating robust forward demand [1] Loyalty Program and Guest Engagement - Loyalty members accounted for nearly 40% of bookings in 2024 and spent 25% more per trip, demonstrating strong engagement and supporting the company's retention efforts for 2025 and beyond [2] - There is a notable increase in cross-brand bookings among loyalty members, indicating a preference for staying within the Royal Caribbean Group ecosystem [2] - Loyalty members show a higher inclination for direct bookings, aided by a doubling of mobile app usage for bookings in 2025, which helps reduce distribution costs [2] Enhancements and New Offerings - Royal Caribbean is enhancing its guest ecosystem with destination-driven improvements, such as the upcoming Royal Beach Club in Nassau, aimed at increasing guest satisfaction and maximizing ancillary spending [3] - The company is building loyalty across various touchpoints, including exclusive locations and digital booking flows, which supports higher guest value and repeat travel [3] Industry Trends - Other cruise lines, such as Carnival Corporation and Norwegian Cruise Line, are also evolving their loyalty strategies to enhance guest retention and spending [4] - Carnival is shifting its loyalty model to reward total spend rather than just cruise nights, with a new program called "Carnival Rewards" aimed at creating a more personalized loyalty experience [5] - Norwegian Cruise is focusing on operational refinements and experiential upgrades without introducing a spend-based loyalty framework, maintaining its loyalty proposition based on cruise frequency [6] Financial Performance and Valuation - Royal Caribbean's shares have increased by 86.3% over the past three months, outperforming the industry's growth of 43% [7] - The company trades at a forward price-to-sales ratio of 4.82X, significantly higher than the industry's average of 2.5X [10] - The Zacks Consensus Estimate for RCL's earnings in 2025 and 2026 indicates a year-over-year increase of 30.7% and 14.5%, respectively, with EPS estimates for 2025 having risen in the past 60 days [12]

Core Insights - Royal Caribbean (RCL) experienced a significant trading signal known as Power Inflow at a price of $331.57, indicating a potential uptrend and a bullish sign for traders [1][5]. Group 1: Power Inflow and Market Trends - The Power Inflow occurred within the first two hours of the market open, suggesting the overall direction of the stock for the remainder of the day, driven by institutional activity [3]. - Following the Power Inflow, RCL's stock reached a high price of $334.48 and a close price of $334.26, resulting in returns of 0.9% and 0.8% respectively [7]. Group 2: Order Flow Analytics - Order flow analytics, which involves analyzing the flow of buy and sell orders, helps traders gain insights into market conditions and make informed trading decisions [2][4]. - The Power Inflow is interpreted as a bullish signal by active traders, emphasizing the importance of understanding institutional movements in the market [2][5].

Core Points - Royal Caribbean is set to launch the Royal Beach Club Paradise Island in The Bahamas, offering an all-inclusive beach day experience starting December 2025 [1][2][12] - The beach club will feature amenities such as pristine beaches, pools, the world's largest swim-up bar, and various dining options, all infused with Bahamian culture [2][8] Summary by Category Beach Club Features - The Royal Beach Club will include two beaches, three pools, and the Floating Flamingo swim-up bar, providing a vibrant atmosphere for guests [8] - Unique offerings include the Ultimate Family Cabana, a two-story private retreat accommodating up to 12 guests, featuring a whirlpool, frozen drink machine, and a slide [4][10] Dining and Beverage Options - Guests can enjoy a variety of dining experiences across three beach grills and 10 bars, with all-inclusive day passes available [8][9] - Day pass pricing starts at $169.99 for adults with various options for different age groups, including free access for children under 3 [11] Booking and Availability - Bookings for the Royal Beach Club experience are now open for guests sailing to Nassau starting late December 2025 [1][12] - The beach club is part of Royal Caribbean's expansion of exclusive destinations, with future locations planned in Cozumel, Lelepa, and Mexico [12]

Royal Caribbean (RCL) ended the recent trading session at $313.14, demonstrating a +1.17% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.52% for the day. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 0.48%. Heading into today, shares of the cruise operator had gained 20.45% over the past month, outpacing the Consumer Discretionary sector's gain of 5.55% and the S&P 500's gain of 4.27%.Analyst ...

Core Insights - Consumer demand for experiential travel is rebounding, benefiting cruise operators like Carnival Corporation & plc (CCL) and Royal Caribbean Cruises Ltd. (RCL) [1] - Both companies are leveraging strong brand portfolios and improving fundamentals to capitalize on elevated demand and pricing power [1] Carnival Corporation (CCL) - Carnival is achieving robust yield growth and operational momentum, exceeding its 2026 targets for EBITDA per berth growth and return on invested capital 18 months ahead of schedule [3] - The company is set to launch Celebration Key, a flagship private Caribbean destination, and is enhancing its "Paradise Collection" strategy with upgrades to existing destinations [4] - Carnival is revamping its fleet and launching a new loyalty program, Carnival Rewards, expected to boost guest engagement [5] - Financially, Carnival has refinanced $7 billion of debt and improved its net debt-to-EBITDA ratio from 4.1x to 3.7x in Q2 2025, focusing on regaining investment-grade status [6] Royal Caribbean Cruises Ltd. (RCL) - Royal Caribbean is executing its "Perfecta Performance" strategy, reporting yield growth of 5.6% and a 35% EBITDA margin in Q1 2025, driven by strong demand and pricing power [7] - The company is expanding its exclusive destination portfolio with the Royal Beach Club in Nassau, aimed at enhancing guest engagement and boosting ancillary revenues [8] - RCL's digital initiatives, including a widely adopted mobile app, are improving direct bookings and revenue capture [9] - However, RCL faces near-term cost pressures related to ship deployment and elevated expenses tied to destination rollouts and dry dock activities [10] Financial Performance and Valuation - The Zacks Consensus Estimate for Carnival's fiscal 2025 sales and EPS suggests increases of 5.4% and 38%, respectively, with earnings estimates rising 3.8% in the past 60 days [11] - For Royal Caribbean, the estimates indicate year-over-year increases of 9.4% in sales and 30.7% in EPS, with a 6% rise in earnings estimates over the same period [13] - Carnival stock has increased by 31.7% over the past three months, while Royal Caribbean shares have risen by 42.6% [15] - Carnival's forward P/E ratio is 12.92X, below the industry average of 18.59X, while RCL's is 17.92X [18] Investment Outlook - Carnival presents a more attractive near-term buying opportunity due to operational efficiency and financial gains, while RCL may require a wait-and-see approach due to cost pressures [27][28]