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Miami-based Royal Caribbean Cruises Ltd. (RCL) operates as a global cruise vacation company. With a market cap of over $85 billion, the company operates cruise brands like Royal Caribbean International, Celebrity Cruises, Azamara, and Silversea Cruises, and holds interests in TUI Cruises, Pullmantur, and SkySea Cruises.
The cruise giant has significantly outperformed the broader market over the past year. RCL stock has soared 102.8% over the past 52 weeks and 35.9% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 19% surge over the past year and 10% returns in 2025.
Narrowing the focus, RCL has also outperformed the sector-focused Consumer Discretionary Select Sector SPDR Fund’s (XLY) 29.1% surge over the past 52 weeks and 2.5% uptick in 2025.
Royal Caribbean Cruises’ stock prices dropped more than 5% in the trading session following the release of its mixed Q2 results on Jul. 29. Driven by continued growth in ticket sales and onboard and other revenues, the company’s overall topline for the quarter grew by a solid 10.4% year-over-year to $4.5 billion. However, the figure missed the Street’s expectations by a tiny margin. Given RCL's outperformance over the past year, this triggered profit booking among investors.
Nonetheless, its overall performance remained more than impressive. RCL’s adjusted net income increased 36.3% year-over-year to $1.2 billion, and its adjusted EPS of $4.38 exceeded the consensus estimates by 6.8%. Further, its operating cash flows grew 16.3% year-over-year to $3.4 billion.
For the full fiscal 2025, ending in December, analysts expect RCL to deliver an adjusted EPS of $15.62, up 32.4% year-over-year. Further, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line projections in each of the past four quarters.
The stock maintains a consensus “Strong Buy” rating overall. Of the 24 analysts covering the RCL stock, opinions include 17 “Strong Buys,” one “Moderate Buy,” and six “Holds.”
This configuration is slightly less optimistic than three months ago, when the stock had 18 “Strong Buy” recommendations.
On Jul. 30, Stifel analyst Steven Wieczynski reiterated a “Buy” rating on RCL and raised the price target from $400 to $420. In his research note, Wieczynski praised RCL’s management team and stated the company is positioned to witness high EPS growth through 2028. His price target suggests a substantial 34% upside potential from current price levels.
As of writing, RCL's mean price target of $350.62 represents a notable 11.9% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
