The heart of the market often flutters, and we come to Royal Caribbean (RCL). There is a swell in its stock, up some 39.30% since barchart.com’s Trend Seeker advised a buy on 11/7. A great ride indeed but who knows how far the waves will carry us.
The trend, confirmed by the steady drone of technical indicators, is upward. Yet, beware the sharks lurking beneath the surface. Analysts’ projections, like storm clouds on the horizon, are erratic. To make a forecast, we may as well flip a coin!
Current Position
Royal Caribbean Cruises Ltd. runs a global cruise business. With 64 ships as of February 13, 2023, the company navigates under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises banners. Its home port is Miami, Florida.
Analyzing the Indicators
Technical indicators point northward with unwavering conviction. A resolute 100% technical buy signals, a Weighted Alpha of 155.70+, and a bullish 160.02% gain in the last year. The Trend Seeker bolstered by the wake of the stock riding above its 20, 50, and 100-day moving averages, a total of 18 new highs, and a buoyant 22.26% surge in the last month. The Relative Strength Index (RSI) reads an exuberant 78.09%. Yet, let’s not forget that technical support is secured at $128.79, the ship’s current port being $129.49, and the 50-day moving average lines its bottom floor at $105.52.
Steering by Fundamentals
On the fundamental horizon, Royal Caribbean boasts a Market Cap of $33.18 billion, a P/E of 30.09, and expects its revenue to swell by 57.50% this year, followed by another 13.60% next year. Earnings, too, are forecasted to swell—by a whopping 187.90% this year and an additional 38.70% next year. Yet, the long-term forecast undercuts the fireworks, predicting an annual flame-out of 160.40% over the next 5 years.
Reading the Waves of Sentiment
Investing is a tale of sentiment. Wall Street analysts—a diverse set indeed—race to cover their bets with a mix of 14 strong buy, 4 buy, 4 hold, and 1 sell recommendation. Their price targets range from a $100 to $155, with a $125 consensus mark—sadly trailing today’s market price. Do those professional forecasters need a new set of glasses? Yet, off the beaten track, individual investors are casting their ballots. Motley Fool’s followers, led by seasoned investors, bet on the stock beating the market. However, the sage heads at Value Line predict a 20% loss within 18 months, swinging the pendulum both ways. Meanwhile, CFRA’s MarketScope places a $146 bull’s eye on the stock, with a hearty 4-star buy. The stock has the attention of some 54,270 investors on Seeking Alpha.
Additional disclosure: Stocks on the Chart of the Day spotlight are akin to finned friends in a shark tank—volatile and speculative. Should you take the plunge into one of these stocks, ensure you’re buoyed by a diversified portfolio and stick to a moving stop loss strategy that sails with your personal investment risk as we have been since 1968. Make a habit of checking in on the tides every week.