- Royal Caribbean (RCL) is showing strong technical momentum, hitting a new 52-week high on July 23.
- RCL has a 100% technical “Buy” signal via Barchart.
- Shares are up more than 130% in the past year.
- Its fundamentals are solid, with projected revenue and earnings growth, but the stock is considered volatile and speculative by some analysts.
Today’s Featured Stock
Valued at $95.8 billion, Royal Caribbean Cruises (RCL) owns and operates three global brands: Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. Additionally, it has invested in a joint venture with TUI AG, which operates the brand TUI Cruises. The company’s cruise brands primarily serve the contemporary, premium, and deluxe segments of the cruise vacation industry, which also includes the budget and luxury segments.
What I’m Watching:
I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. RCL checks those boxes. Since the Trend Seeker signaled a buy on May 2, the stock has gained 53.4%.
RCL Price vs. Daily Moving Averages:
Barchart Technical Indicators for Royal Caribbean:
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Royal Caribbean shares hit a new 52-week high on July 23, touching $355.91 in intraday trading.
- RCL has a 100% technical “Buy” signal.
- The stock recently traded at $352.66, above its 50-day moving average of $294.34.
- Royal Caribbean has a Weighted Alpha of +152.99.
- The stock has gained 130% over the past year.
- RCL has its Trend Seeker “Buy” signal intact.
- Royal Caribbeans is trading above its 20, 50 and 100-day moving averages.
- The stock made 11 new highs and gained 14% in the last month.
- Relative Strength Index is at 75.59%.
- The technical support level is $349.85.
Don’t Forget the Fundamentals:
- $95.8 billion market capitalization.
- Trailing price-earnings ratio of 27.4x.
- 0.85% dividend yield.
- Revenue is projected to grow 9.52% this year and another 9.71% next year.
- Earnings are estimated to increase 30.98% this year and increase an additional 17.20% next year.
Analyst and Investor Sentiment on Royal Caribbean:
I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.
It looks like Wall Street analysts are bullish, but some major advisory sites are split.
- The Wall Street analysts tracked by Barchart issued 18 “Strong Buy,” one “Moderate Buy,” and six "Hold" opinions on the stock.
- Value Line gives the company its above-average rating.
- CFRA’s Market Scope rates the stock a “Buy” with a price target of $357.
- Morningstar thinks the stock is 74% overvalued.
- 63,510 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”
The Bottom Line:
Royal Caribbean currently has momentum and is hitting new highs. It has positive sentiment from Wall Street, plus analysts project small increases in revenue and double-digit growth in earnings.
I caution that RCL is volatile and speculative — use strict risk management and stop-loss strategies.
Today’s Chart of the Day was written by Jim Van Meerten. Read previous editions of the daily newsletter here.
Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
On the date of publication, Jim Van Meerten 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.
