Core Viewpoint - Royal Caribbean Cruises Ltd. (RCL) has experienced a significant decline in share price, losing 12.6% in the past month, which is worse than the industry and S&P 500 declines of 13.2% and 5.5%, respectively, and is currently trading 31% below its 52-week high of 277.08[1][2].PricePerformance−ThecruiseindustryisfacingchallengesduetoatariffwarandcommentsfromCommerceSecretaryHowardLutnickregardingtheindustry′srelianceonforeign−flaggedvessels,raisingconcernsaboutU.S.taxavoidance[2].−Despitetherecentpullback,RCLshareshavegained51.22.05 billion, an increase of 8.6% year over year, with expectations of elevated fuel and food costs [5]. - Total operating expenses are projected to rise by 3.8% year over year to 8.98billionin2025[5].Valuation−RCLiscurrentlytradingataforward12−monthprice−to−earnings(P/E)ratioof12.37,whichisbelowtheindustryaverage,indicatinganattractivediscountrelativetoitspeers[7].BookingTrends−Thecompanyisexperiencingstrongbookingmomentum,withrecord−settingbookingsandrobustdemandacrossallproducts,particularlyinNorthAmerica[10].−Advancepurchasedepositsarehigherthanpreviousyears,allowingforstrategicpricingandyieldoptimization[11].FleetExpansion−RCL′sgrowthstrategyincludesexpandingitsfleetwithinnovativeshipsanduniquedestinationexperiences,withplansforafourthIcon−classshiptojointhefleetin2027[12][13].−Thecompanyisalsoinvestinginprivatedestinationstoenhanceguestexperiences[12].EarningsEstimates−Analystshaveslightlyreducedearningsestimatesforthecurrentandnextyears,projectingyear−over−yeargrowthratesof25.717.95 billion and $19.71 billion, suggesting growth rates of 8.9% and 9.8% year over year [16]. Business Momentum - RCL continues to show strong underlying business momentum, supported by record bookings and fleet expansions that enhance long-term profitability [17].
Royal Caribbean Cruises .(RCL) ZACKS·2025-04-15 14:11