The redeployment of the fleet was completed mid-2022, and booking patterns have returned to a historical pace. As such, Royal Caribbean should see record pricing in 2023, as the firm digests a few remaining bookings paid for with future cruise credits and takes new reservations. On the cost side, the impact of inflation and fuel prices could reman disruptive over the near term but should continue to moderate over the remainder of 2023, aiding profitability. Royal Caribbean reported revenues of $3.52 billion in the last reported quarter, representing a year-over-year change of +61.3%. EPS of $1.82 for the same period compares with -$2.08 a year ago.

Dividend yield allows investors, particularly those interested in dividend-paying stocks,
to compare the relationship between a stock’s price and how it rewards stockholders through dividends. The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price. Despite its low price-to-fair-value ratio, Royal Caribbean Group’s falling revenues and earnings cast a long shadow over its investment attractiveness.

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The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. Plus, RCL info will be updated daily in your Zacks.com Portfolio Tracker – also free.

These returns cover a period from January 1, 1988 through July 31, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return.

• High-growth stocks tend to represent the technology, healthcare, and communications sectors.
• Richard D. Fain has an approval rating of 95% among the company’s employees.
• Data may be intentionally delayed pursuant to supplier requirements.
• In such a scenario, the low price-to-GF-Value ratio may be more indicative of a value trap than a value opportunity.

So, it’s important to know a company’s potential revenue growth. The consensus earnings estimate of $6.02 for the current fiscal year indicates a year-over-year change of +180.3%. For the next fiscal year, the consensus earnings estimate of $8.15 indicates a change of +35.3% from what Royal Caribbean is expected to report a year ago.

Quarterly Numbers

The company was founded in 1968 and is headquartered in Miami, Florida. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. Without considering a stock’s valuation, no investment decision can be efficient. In predicting a stock’s future price performance, it’s crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company’s growth prospects.

The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The scores are based on the trading styles of Value, Growth, and Momentum.

What is Stock Sentiment?

When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock’s fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Azamara, and Silversea Cruises brands, which comprise a range of itineraries that call on approximately 1,000 destinations.

• 545 employees have rated Royal Caribbean Cruises Chief Executive Officer Richard D. Fain on Glassdoor.com.
• Royal Caribbean Cruises’ stock was trading at $49.43 on January 1st, 2023.
• The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.
• The company was founded in 1968 and is headquartered in Miami, Florida.
• Before delving into the details, let’s understand what the Altman Z-score entails.

A low price relative to intrinsic value can indeed suggest an investment opportunity, but only if the company’s fundamentals are sound or improving. In Royal Caribbean Group’s case, the declining revenues, EBITDA, and earnings growth suggest that the company’s issues may be more than just cyclical fluctuations. The company beat consensus EPS estimates in each of the trailing four quarters.

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The facts discussed here and much other information on Zacks.com might help determine whether or not it’s worthwhile paying attention to the market buzz about Royal Caribbean. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term. Upgrade to MarketBeat All Access to add more stocks to your watchlist. Click the link below and we’ll send you MarketBeat’s list of the 10 best stocks to own in 2023 and why they should be in your portfolio. Sign-up to receive the latest news and ratings for Royal Caribbean Cruises and its competitors with MarketBeat’s FREE daily newsletter. Impressive performance in Q2 led to higher earnings expectations for the year.

The Altman Z-Score combines five different financial ratios, each weighted to create a final score. A score below 1.8 suggests a high likelihood of financial distress, while a score above 3 indicates a low risk. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. Compared to the Zacks Consensus Estimate of $3.38 billion, the reported revenues represent a surprise of +4.28%. Fool.com contributor Parkev Tatevosian compares Carnival (CCL 3.36%) with Royal Caribbean (RCL 1.58%) to determine which is the better cruise ship stock to buy now. Get this delivered to your inbox, and more info about our products and services.

RCL Stock – Frequently Asked Questions

They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends. While earnings growth is arguably the most superior indicator of a company’s financial health, nothing happens as such if a business isn’t able to grow its revenues. After all, it’s nearly impossible for a company to increase its earnings for an extended period without increasing its revenues.

Since then, RCL stock has increased by 96.9% and is now trading at $97.35. RCL’s beta can be found in Trading Information at the top of this page. A stock’s beta measures how closely tied its price movements have been to the performance of the overall market. As an investor, you want to buy https://1investing.in/ stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style. The Style Scores are a complementary set of indicators to use alongside the Zacks Rank.

We’d like to share more about how we work and what drives our day-to-day business. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Compare
RCL’s historical quality check meaning performance
against its industry peers and the overall market. Morningstar analysts hand-select direct competitors or comparable companies to
provide context on the strength and durability of RCL’s
competitive advantage. Without a clear turnaround strategy, there’s a risk that the company’s performance could continue to deteriorate, leading to further price declines.

The company topped consensus revenue estimates two times over this period. In the case of Royal Caribbean, the consensus sales estimate of $3.99 billion for the current quarter points to a year-over-year change of +33.3%. The $13.66 billion and $15.4 billion estimates for the current and next fiscal years indicate changes of +54.5% and +12.7%, respectively. Style is an investment factor that has a meaningful impact on investment risk and returns. Style is calculated by combining value and growth scores, which are first individually calculated.

In such a scenario, the low price-to-GF-Value ratio may be more indicative of a value trap than a value opportunity. Data are provided ‘as is’ for informational purposes only and are not intended for trading purposes. Data may be intentionally delayed pursuant to supplier requirements.