Royal Caribbean (RCL) shares soared 3.3% in the last trading session to close at $238.43. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.9% loss over the past four weeks.
Royal Caribbean’s stock rally is driven by strong demand for cruising, supported by both loyal repeat customers and an increasing number of first-time travelers. Exceptional booking trends and solid consumer spending, both onboard and through pre-cruise purchases, have further bolstered the company’s performance.
This cruise operator is expected to post quarterly earnings of $1.49 per share in its upcoming report, which represents a year-over-year change of +19.2%. Revenues are expected to be $3.77 billion, up 13.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Royal Caribbean, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on RCL going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Royal Caribbean belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Lucky Strike Entertainment (LUCK), closed the last trading session 1.6% higher at $10.39. Over the past month, LUCK has returned -13.5%.
Lucky Strike Entertainment's consensus EPS estimate for the upcoming report has changed -27.5% over the past month to $0.07. Compared to the company's year-ago EPS, this represents a change of +800%. Lucky Strike Entertainment currently boasts a Zacks Rank of #3 (Hold).
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