Pre-Market Laggard: Royal Caribbean Cruises (RCL) - TheStreet

Trade-Ideas LLC identified

Royal Caribbean Cruises

(

RCL

) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Royal Caribbean Cruises as such a stock due to the following factors:

  • RCL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $165.8 million.
  • RCL traded 13,899 shares today in the pre-market hours as of 9:17 AM.
  • RCL is down 2.2% today from Friday's close.

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More details on RCL:

Royal Caribbean Cruises, Ltd. operates as a cruise company. The company operates cruisers under the Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisieres de France, and TUI Cruises brand names. The stock currently has a dividend yield of 1.6%. RCL has a PE ratio of 37. Currently there are 12 analysts that rate Royal Caribbean Cruises a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Royal Caribbean Cruises has been 2.1 million shares per day over the past 30 days. Royal Caribbean Cruises has a market cap of $20.8 billion and is part of the services sector and leisure industry. The stock has a beta of 0.78 and a short float of 6% with 5.74 days to cover. Shares are up 14.1% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Royal Caribbean Cruises as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:

  • RCL's revenue growth has slightly outpaced the industry average of 1.3%. Since the same quarter one year prior, revenues slightly increased by 5.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 45.03% is the gross profit margin for ROYAL CARIBBEAN CRUISES LTD which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.06% trails the industry average.
  • Compared to its closing price of one year ago, RCL's share price has jumped by 34.67%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • ROYAL CARIBBEAN CRUISES LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ROYAL CARIBBEAN CRUISES LTD increased its bottom line by earning $3.42 versus $2.14 in the prior year. This year, the market expects an improvement in earnings ($4.80 versus $3.42).
  • Even though the current debt-to-equity ratio is 1.03, it is still below the industry average, suggesting that this level of debt is acceptable within the Hotels, Restaurants & Leisure industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.09 is very low and demonstrates very weak liquidity.

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