In the latest trading session, Royal Caribbean (RCL) closed at $191.56, marking a -0.94% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 2.24%. Meanwhile, the Dow lost 1.73%, and the Nasdaq, a tech-heavy index, lost 3.07%.

Shares of the cruise operator have depreciated by 4.92% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 5.64% and lagging the S&P 500's loss of 4.17%.

The upcoming earnings release of Royal Caribbean will be of great interest to investors. The company's earnings report is expected on April 29, 2025. On that day, Royal Caribbean is projected to report earnings of $2.52 per share, which would represent year-over-year growth of 42.37%. At the same time, our most recent consensus estimate is projecting a revenue of $4 billion, reflecting a 7.38% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $14.83 per share and revenue of $17.95 billion, which would represent changes of +25.68% and +8.86%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Royal Caribbean. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.56% lower. Right now, Royal Caribbean possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Royal Caribbean is presently being traded at a Forward P/E ratio of 13.04. This indicates a discount in contrast to its industry's Forward P/E of 16.49.

We can additionally observe that RCL currently boasts a PEG ratio of 0.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Leisure and Recreation Services industry stood at 1.03 at the close of the market yesterday.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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