Royal Caribbean (RCL) Laps the Stock Market: Here's Why

Company Performance - Royal Caribbean (RCL) closed at $333.57, with a +1.02% increase from the previous day, outperforming the S&P 500's gain of 0.61% [1] - The stock has risen by 22.43% over the past month, significantly exceeding the Consumer Discretionary sector's gain of 5.12% and the S&P 500's gain of 3.85% [1] Upcoming Financial Results - The projected earnings per share (EPS) for Royal Caribbean is $4.05, reflecting a 26.17% increase from the same quarter last year [2] - Revenue is expected to reach $4.54 billion, up 10.58% from the prior-year quarter [2] Fiscal Year Estimates - For the entire fiscal year, earnings are estimated at $15.43 per share and revenue at $18.05 billion, indicating increases of +30.76% and +9.48% respectively from the previous year [3] - Recent analyst estimate changes suggest a favorable outlook on the company's business health and profitability [3] Valuation Metrics - Royal Caribbean has a Forward P/E ratio of 21.4, which is a discount compared to the industry average Forward P/E of 21.76 [6] - The company holds a PEG ratio of 0.98, compared to the industry average PEG ratio of 1.99 [6] Industry Context - The Leisure and Recreation Services industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]