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Royal Caribbean Sailing the Seas of Success

By:
Lucas Downey
Updated: May 28, 2024, 16:04 GMT+00:00

Pleasure cruisers are back on the water big-time, especially on Royal Caribbean Group (RCL) ships.

Royal Caribbean's Oasis of the Seas . FX Empire

In this article:

The cruise company projected record profits in 2024, launched two huge ships recently, and is among industry leaders in becoming more environmentally friendly.

On the financial front, strong demand is being matched by strong revenue and margins. The company projects its revenue to grow 16% in fiscal 2024 and 9% in fiscal 2025. Even better, RCL estimates earnings will climb 62% in 2024 to $10.96 per share, with another 15% gain in 2025.

So, it’s not surprising that RCL shares have gained 15% so far this year – and there could be even more room to grow. Based on MAPsignals data, Big Money investors are betting heavily on the forward picture of the stock.

Royal Caribbean Shares Under Heavy Demand

Institutional volumes reveal plenty. In the last year, RCL has enjoyed heavy Big Money buying, which we believe to be institutional accumulation.

Each of the green bars signal unusually large volumes in RCL shares, pushing the stock higher:

Source: www.mapsignals.com

Plenty of discretionary names are under accumulation right now. But when you dive into the fundamentals, there’s a special tailwind going on with Royal Caribbean.

Royal Caribbean Fundamental Analysis

Institutional support coupled with a healthy fundamental backdrop makes this company worth investigating. As you can see, RCL has huge sales and earnings growth:

  • 3-year sales growth rate (+167.9%)
  • 3-year EPS growth rate (+41.1%)

Source: FactSet

The one-year EPS outlook is estimated to increase by +15.8%.

Now it makes sense why the stock has been powering to new heights. RCL is gaining due to its strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

RCL has been a top-rated stock at MAPsignals for a while. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report numerous times. The blue bars below show when RCL was a top pick…sailing higher along the way.

Source: www.mapsignals.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most superstar stocks exhibit. Today’s money flows often reveal tomorrow’s leaders.

Royal Caribbean Price Prediction

The RCL rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in RCL at the time of publication.

If you are a Registered Investment Advisor (RIA) or a serious investor looking to take your investing to the next level, learn more about the MAPsignals process here.

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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