Has RCL Stock Been Good for Investors?

Core Viewpoint - Royal Caribbean has successfully navigated challenges in the cruise industry post-pandemic, outperforming the market over various time frames [2][4]. Group 1: Recent Performance - Over the past year, Royal Caribbean's stock has increased by 12%, slightly outperforming the S&P 500's return of 11.6% [3]. - The stock experienced a nearly 20% decline in the last three months, primarily following disappointing financial results released in late October [3][4]. - Revenue for the third quarter rose by 5%, marking the weakest growth since operations resumed in summer 2021, while adjusted earnings increased by 11% [4]. Group 2: Long-term Performance - Over the past three years, Royal Caribbean's stock has surged by 350%, significantly outperforming the market's 66% increase during the same period [7]. - The company has exceeded its previous revenue and profitability records, achieving a 59% increase in trailing revenue compared to its 2019 peak [8][10]. - Over five years, the stock has gained 224%, nearly tripling the S&P 500's 82% return, despite initial challenges from the "No Sail Order" [9]. Group 3: Market Position and Future Outlook - Royal Caribbean is currently trading at less than 15 times forward earnings, indicating potential for investment [10]. - The company has a healthy backlog of bookings for 2026 at higher price points, suggesting resilience against near-term economic uncertainties [10].