In This Article:
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Different than value or growth investors, momentum-oriented investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
Royal Caribbean (RCL)
Based in Miami and incorporated in 1985, Royal Caribbean Cruises is a cruise company. It owns and operates three global brands — Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. Additionally, it has a 50% investment in a joint venture with TUI AG, which operates the brand TUI Cruises.
RCL boasts a Momentum Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Royal Caribbean has seen some interesting price action recently; the stock is up 1.4% over the past one week and up 21.5% over the past four weeks. And in the last one-year period, RCL has gained 65.4%. As for the stock's trading volume, 1,931,505.63 shares on average were traded over the last 20 days.
A company's earnings performance is important for momentum investors as well. For fiscal 2025, seven analysts revised their earnings estimate higher in the last 60 days for RCL, while the Zacks Consensus Estimate has increased $0.32 to $15.22 per share. RCL also boasts an average earnings surprise of 8.7%.
With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding RCL to their portfolios.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).