Royal Caribbean Group Royal Caribbean Group RCL $ 123.34 $8.24 7.3% 115% IBD Stock Analysis Retakes 10-week line after round tripping December breakout. Composite Rating 91 /99 Industry Group Ranking 126 /197 Emerging Pattern Pullback Pullback A stock may pull back after a breakout, often to the 50-day line. A rebound from the first or second visit to the 50-day can be a buying opportunity, especially for existing holders to add some shares.
Royal Caribbean is the IBD Stock of The Day for Thursday as RCL stock flashed an entry signal on strong volume after the cruise line giant hoisted its outlook late Wednesday. Meanwhile, travel stocks surged after Trip.com cleared Q4 views Wednesday evening.
X
Riding Demand Wave
Royal Caribbean (RCL) towed fellow cruise stocks higher after hiking its 2024 earnings guidance Wednesday night, citing stronger-than-expected vacation demand.
The cruise line now expects full-year earnings per share of $9.90-$10.10, up 40 cents from its February target of a record $9.50-$9.70. About 15 cents of that increase reflects an improved revenue outlook in the first quarter.
“Since our last earnings call, robust demand for our vacation experiences has significantly exceeded our initial expectations,” CEO Jason Liberty said.
The company attributed the demand increase to its “WAVE season,” which offers extra deals from January through March.
Royal Caribbean at the beginning of February cleared fourth-quarter estimates and projected a 40% adjusted earnings jump for 2024 at the time. The company reported adjusted earnings of $1.25 per share, improved from a loss of $1.12 per share the prior year. Revenue leapt about 28% to $3.33 billion but slowed for the sixth straight quarter as sales growth normalized following the Covid-19 pandemic, the company said.
FactSet analysts expected adjusted earnings to improve to $1.14 per share on 29% higher revenue of $3.36 billion.
Rival Carnival Cruise (CCL) in early February announced it is almost sold out for the first half of the year after seeing record booking volumes since November. However, the company expects to take a 7- to 8-cent hit to its adjusted 2024 earnings per share due to rerouting around the Red Sea conflict. Carnival expects most of the profit impact to occur in Q2 and said it has not seen any effects to its booking trends. The cruise line giant reported better-than-expected Q4 earnings and revenue in late December.
Royal Caribbean Stock
RCL stock rallied more than 7% Thursday to retake its 50-day moving average as daily trade volume spiked 200%, according to MarketSmith charts. That offered investors a follow-on entry opportunity. A push above a stock’s 50-day line in strong volume is often considered a bullish indicator, but not necessarily a good place to open a new position.
Shares in December broke out from a 17-week cup base, then rose not quite 20% above the entry. RCL stock pulled back nearly all the way to the buy point — a type of sell signal. Thursday’s jump provides a chance to rebuild the position for investors who pared back on the decline.
Royal Caribbean’s relative strength line is climbing off recent lows toward late-December highs. RCL stock has an 89 RS Rating out of a best-possible 99. It has a 91 Composite Rating. The Composite Rating combines various technical indicators into one easy-to-read score. Royal Caribbean has an 82 EPS Rating.
Carnival Cruise stock, meanwhile, surged 3.5% during Thursday trade to push back above its 200-day line.
Norwegian Cruise Line Holdings (NCLH) rose 1.1%. NCLH stock is shy of its 10-day line and trading below its other moving averages.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
YOU MAY ALSO LIKE:
Stock Market Today: Dow Jones Rallies After Surprise Jobless Claims; Nvidia Soars To Record Highs
Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
Join IBD Live And Learn Top Chart Reading And Trading Techniques From Pros
Market Rally Runs To New High On Nvidia; Carvana Soars Late
Royal Caribbean: Wave Of Demand Carries Stock Of The Day Into Buy Zone
- Advertisment - 
Recent Comments
on Saipan, placid island setting for Assange’s last battle, is briefly mobbed – and bemused by the fuss
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on David and Victoria Beckham so ‘Charmed’ by Tom Cruise They Have His Photos on Display at Their Home
on Iowa State starting RB Jirehl Brock among latest college football players charged in gambling probe
on Biden to tout bill’s prescription drug prices, energy provisions in pitch to Americans, aide says
on Iowa State starting RB Jirehl Brock among latest college football players charged in gambling probe
on The Rev. Al Sharpton to lead protest after Florida governor’s ban of African American studies course
on Sports World Hails ‘Superwoman’ Lindsey Vonn for Her Grand Comeback Despite Career-Changing Injury
on San Mateo County Community College District sues five companies over role in ‘pay to play’ scandal
on Saipan, placid island setting for Assange’s last battle, is briefly mobbed – and bemused by the fuss
on ‘Pokémon Scarlet’ and ‘Violet’ Fan Theories Suggest Legendary Time Travel, Alternate Dimension Plot
on Joe Manchin and Tommy Tuberville introduce bill on name, image and likeness rules for college sports
on Inside the Michael Jordan ‘Air’ movie, plus why NFL, others are buying into the sports film industry
on If you’re a frequent traveler, these wrap tops from Aday will revolutionize your on-the-go wardrobe
on How Does Jack Nicklaus Travel? Exploring the Private Jets Owned by the ‘Golden Bear’ Over the Years
on Hollywood Reporter: Tom Cruise negotiated with movie studios over AI before the actors strike began
on Ford Blue Cruise: US regulators investigate fatal crashes involving hands-free driving technology
on Dozens of boats cruise the Seine in a rehearsal for the Paris Olympics’ opening ceremony on July 26
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 David and Victoria Beckham so ‘Charmed’ by Tom Cruise They Have His Photos on Display at Their Home
on CONCEPT ART: New Details Revealed for Disney Cruise Line Lookout Cay at Lighthouse Point Destination
on CBS Sports announces Matt Ryan will join NFL studio show. Longtime analysts Simms and Esiason depart
on Boston College vs. Army live stream, how to watch online, CBS Sports Network channel finder, odds
on Boise State vs. Air Force live stream, odds, channel, prediction, how to watch on CBS Sports Network
on Biden to tout bill’s prescription drug prices, energy provisions in pitch to Americans, aide says
on After UFC Fallout, Conor McGregor Offers a Valuable Piece of Advice to Free Agent Francis Ngannou
on 2024 Super Bowl: CBS Sports Network and CBS Sports HQ to combine for 115 hours of weeklong coverage
on ‘Best Intention’: Chris Kirk Has Absolute Trust in Jay Monahan and PGA Tour’s Widely Debated Model
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on “Completely Knocked Me Out”: Rob Lowe Recalls Boxing Match With Tom Cruise On 1983 Brat Pack Classic
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 announces Matt Ryan will join NFL studio show. Longtime analysts Simms and Esiason depart
on Carlos Sainz’s Soccer Fanboy Emerges as Spaniard Shares Defining Moment With This Real Madrid Legend
on Biden: ‘At this point I’m not’ planning to visit East Palestine, Ohio, after toxic train derailment
on ‘Best Intention’: Chris Kirk Has Absolute Trust in Jay Monahan and PGA Tour’s Widely Debated Model
on Ahead of big sports weekend, dispute with Disney leaves millions of cable subscribers in the dark
on A heavy wave of Russian missile attacks pounds areas across Ukraine, killing at least 4 civilians
on 2024 Super Bowl: CBS Sports Network and CBS Sports HQ to combine for 115 hours of weeklong coverage
on 2023 NFL All-Rookie Team: CBS Sports draft expert, former GM unveil league’s best first-year players
on Army vs. Coastal Carolina live stream, how to watch online, CBS Sports Network channel finder, odds
on AL Rookie of the Year Julio Rodriguez Spreads Joy and Sportsmanship to the Youth of Loma de Cabrera
on After UFC Fallout, Conor McGregor Offers a Valuable Piece of Advice to Free Agent Francis Ngannou
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