In This Article:
Royal Caribbean (RCL) shares soared 16.3% in the last trading session to close at $209.51. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 13% loss over the past four weeks.
Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, Royal Caribbean shares soared, reflecting renewed investor optimism.
This cruise operator is expected to post quarterly earnings of $2.52 per share in its upcoming report, which represents a year-over-year change of +42.4%. Revenues are expected to be $4 billion, up 7.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Royal Caribbean, the consensus EPS estimate for the quarter has been revised 0.9% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate 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 #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Royal Caribbean is a member of the Zacks Leisure and Recreation Services industry. One other stock in the same industry, Lindblad Expeditions (LIND), finished the last trading session 13.2% higher at $8.82. LIND has returned -24.1% over the past month.
Lindblad Expeditions' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.12. Compared to the company's year-ago EPS, this represents a change of -20%. Lindblad Expeditions currently boasts a Zacks Rank of #3 (Hold).
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
Lindblad Expeditions (LIND) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).