Trade-Ideas LLC identified

Royal Caribbean Cruises

(

RCL

) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Royal Caribbean Cruises as such a stock due to the following factors:

  • RCL has 14x the normal benchmarked social activity for this time of the day compared to its average of 1.71 mentions/day.
  • RCL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $168.4 million.

Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.

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More details on RCL:

Royal Caribbean Cruises Ltd. operates as a cruise company. The company operates cruises 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 2.1%. RCL has a PE ratio of 14. Currently there are 9 analysts that rate Royal Caribbean Cruises a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Royal Caribbean Cruises has been 2.3 million shares per day over the past 30 days. Royal Caribbean Cruises has a market cap of $15.1 billion and is part of the services sector and leisure industry. The stock has a beta of 1.19 and a short float of 9.4% with 5.58 days to cover. Shares are down 34.8% year-to-date as of the close of trading on Monday.

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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 increase in net income, revenue growth, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 119.2% when compared to the same quarter one year prior, rising from $45.23 million to $99.14 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 11.1%. Since the same quarter one year prior, revenues slightly increased by 5.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 35.41% 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 5.16% trails the industry average.
  • Net operating cash flow has increased to $477.90 million or 12.06% when compared to the same quarter last year. Despite an increase in cash flow, ROYAL CARIBBEAN CRUISES LTD's average is still marginally south of the industry average growth rate of 14.07%.

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