Royal Caribbean Cruises Stock Outlook: Is Wall Street Bullish or Bearish?
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Headquartered in Miami, Florida, Royal Caribbean Cruises Ltd. (RCL) is a leading player in the global cruise industry. With a market cap of $63.1 billion, Royal Caribbean is committed to providing exceptional vacation experiences, operating a diverse fleet of innovative ships that serve millions of guests worldwide.
Royal Caribbean Cruises stock has significantly outperformed the broader market over the past year. The stock gained 122.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.1%. In 2024 alone, RCL stock is up 82.2%, while SPX is up 24.1% on a YTD basis.
Zooming in further, RCL has outperformed the Defiance Hotel, Airline, and Cruise ETF’s (CRUZ) 34.8% returns over the past 52 weeks and 22.4% on a YTD basis.
Royal Caribbean Cruises delivered a solid Q3 earnings result on Oct. 29, and the stock surged 3.2%. While revenue rose 17.4% year-over-year to $4.89 billion, meeting estimates, adjusted EPS of $5.20 exceeded expectations by 3.3%. EBITDA of $2.15 billion outpaced forecasts by 4.6%, supported by robust demand and improved margins.
Additionally, the company raised its full-year 2024 adjusted EPS guidance to $11.57 to $11.62 range, driven by strong Q3 revenue and higher pricing expectations for Q4.
For the current fiscal year, ending in December, analysts anticipate Royal Caribbean’s EPS to rise by 71.9% year over year to $11.64. The company’s earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 19 analysts covering RCL stock, the consensus is a “Strong Buy.” That’s based on 14 “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
This configuration has been consistent over the past month.
On Nov. 13, Bank of America (BAC) analyst Andrew Didora raised Royal Caribbean's price target to $240 from $210, citing solid industry fundamentals, increased cruise spending, and a valuation boost following election results.
While RCL is currently trading at a premium to the mean price target of $230.55, the Street-high price target of $270 suggests a 14.5% upside potential.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.