Royal Caribbean (RCL) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Company Performance - Royal Caribbean's stock closed down 2.88% at $258.08, underperforming the S&P 500 which lost 1.13% [1] - Over the past month, Royal Caribbean shares gained 6.25%, outperforming the Consumer Discretionary sector's gain of 3.54% and the S&P 500's gain of 3.55% [1] Financial Expectations - Analysts expect Royal Caribbean to report earnings of $4.04 per share, reflecting a year-over-year growth of 25.86% [2] - Revenue is anticipated to be $4.54 billion, up 10.44% from the prior-year quarter [2] Full Year Projections - For the full year, earnings are projected at $15.42 per share and revenue at $18.03 billion, indicating changes of +30.68% and +9.36% respectively from the previous year [3] - Recent revisions to analyst estimates suggest a positive outlook for the business [3] Stock Performance Correlation - Empirical research indicates that revisions in estimates correlate with stock price performance [4] - The Zacks Rank system, which incorporates estimate changes, has a track record of outperformance [4] Zacks Rank and Valuation - Royal Caribbean currently holds a Zacks Rank of 3 (Hold) with a recent upward shift of 0.65% in the consensus EPS estimate [5] - The company is trading at a Forward P/E ratio of 17.24, which is below the industry average of 19.84 [6] - The PEG ratio for Royal Caribbean is 0.79, compared to the industry average PEG ratio of 1.47 [6] Industry Context - The Leisure and Recreation Services industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 78, placing it in the top 32% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]