Royal Caribbean (RCL) Stock Dips While Market Gains: Key Facts

Company Performance - Royal Caribbean's stock closed at $164.62, reflecting a -1.33% change from the previous day's closing price, underperforming the S&P 500's gain of 1.01% [1] - Over the past month, Royal Caribbean's shares have increased by 12.66%, while the Consumer Discretionary sector and S&P 500 gained 2.54% and 2.5%, respectively [1] Earnings Expectations - The upcoming earnings report is anticipated to show an EPS of $4.98, representing a 29.35% increase from the same quarter last year, with revenue expected to reach $4.84 billion, indicating a 16.28% growth year-over-year [2] - For the annual period, earnings are projected at $11.50 per share and revenue at $16.41 billion, reflecting increases of +69.87% and +18.1% from the previous year [3] Analyst Sentiment - Recent analyst estimate revisions suggest a positive outlook for Royal Caribbean, indicating optimism about the company's business trends [3][4] - The Zacks Rank system currently rates Royal Caribbean as 1 (Strong Buy), with a historical average annual return of +25% for this rating since 1988 [5] Valuation Metrics - Royal Caribbean has a Forward P/E ratio of 14.51, which is lower than the industry average of 18.68, suggesting a valuation discount [6] - The company also has a PEG ratio of 0.48, compared to the industry average PEG ratio of 1.06, indicating favorable growth expectations relative to its valuation [6] Industry Context - The Leisure and Recreation Services industry, which includes Royal Caribbean, ranks in the bottom 33% of all industries according to the Zacks Industry Rank, which measures the strength of industry groups [7]