Royal Caribbean (RCL) is Thursday’s IBD 50 Growth Stocks To Watch pick as it forms a cup base and nears a buy point. The cruise line company raised guidance in mid-February due to strong demand, reversing Royal Caribbean stock’s downtrend.
X
The stock is ranked second out of 48 stocks in the leisure services group. The group rose to 73rd from 126th four weeks ago. Demand for cruises and international travel has been robust and is expected to remain strong.
Royal Caribbean Stock Nears A Buy Point
Royal Caribbean stock is in a third-stage base with a 133.77 buy point, according MarketSurge pattern recognition. The buy point coincides with its 52-week high reached on Feb. 1, the day after the cruise line company reported a mixed fourth quarter. The report started a sell-off that took the stock below its 50-day moving average several days later.
But the cruise line operator gapped up 6.7% in heavy volume on Feb. 22, after the company gave higher full-year 2024 adjusted earnings guidance the previous evening. Royal Caribbean stock reclaimed its 50-day line and has continued to climb back.
CEO Expects Great Things
Royal Caribbean beat its fourth-quarter earnings estimates but came up short against sales views. Still, the outlook is positive.
“With the wind in our sails and record-breaking bookings, 2024 is poised to be another robust year,” CEO Jason Liberty said in the earnings report.
The company raised its full-year earnings per share to $9.90-$10.10 from its February target of $9.50-$9.70.
“Since our last earnings call, robust demand for our vacation experiences has significantly exceeded our initial expectations,” Liberty said.
Royal Caribbean’s first five weeks of the year — called the WAVE weeks — were the best in the company’s history.
Current-quarter sales are expected to grow 27% then trail off to a 13% increase the following two quarters, according to FactSet estimates in MarketSurge. Analysts also forecast 47% profit growth in 2024 and 16% in 2025.
Royal Caribbean stock holds a 98 IBD Composite Rating. Its 82 EPS Rating includes losses racked up going back to 2020 during the pandemic.
Follow Kimberley Koenig for more stock news on Twitter @IBD_KKoenig.
YOU MAY ALSO LIKE:
Cash App Parent Block In Buy Zone After 105% Profit Growth | Stocks To Watch
German Bank Stock Hits A High At Key Level; Tencent Music Rebounds To New High | Where To Invest
As Gold Prices Hit Record Highs, Is It Time To Buy? Here’s What Charts Show | Where To Invest
Looking For Market Insights? Check Out Our Live Daily Segment
IBD 50 Stock First Citizens Bank Still Ripe For The Picking | Stocks To Watch
Royal Caribbean Stock Near Highs As Cruise Line Sees ‘Wind In Our Sails’
- Advertisment - 
Recent Comments
on Dubai International Airport sees 41.6 million passengers in first half of year, more than in 2019
on Devout athletes find strength in their faith. But practicing it and elite sports can pose hurdles
on Despite strong Lunar New Year holiday data, consumer spending in China isn’t roaring back just yet
on Dave Portnoy: Taylor Swift’s security should ‘drag Kim Kardashian to jail’ if she attends Eras Tour
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
on CBS Sports, Serie A announce new TV rights deal; Paramount+ to air over 400 Italian soccer matches
on Cam Newton’s Violent Public Incident Draws Hilarious Reaction From 3x All-Star: “Where Do I Sign Up
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Angel Reese Launches Foundation Dedicated To Empowering Women Through Sports & Financial Literacy
on A weaker dollar, skyrocketing prices and ‘record’ visitor numbers: Good luck in Europe this summer