Royal Caribbean Cruises Ltd. (RCL): Today's Featured Services Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Royal Caribbean Cruises ( RCL) pushed the Services sector higher today making it today's featured services winner. The sector as a whole was unchanged today. By the end of trading, Royal Caribbean Cruises rose 51 cents (2%) to $26.08 on average volume. Throughout the day, 2.3 million shares of Royal Caribbean Cruises exchanged hands as compared to its average daily volume of 2.2 million shares. The stock ranged in a price between $25.50-$26.33 after having opened the day at $25.80 as compared to the previous trading day's close of $25.57. Other companies within the Services sector that increased today were: FreeSeas ( FREE), up 20.7%, Cache ( CACH), up 12.9%, Liberty Media Corp Class B ( LVNTB), up 12.7%, and Cambium Learning Group ( ABCD), up 10.7%.

Royal Caribbean Cruises Ltd. operates in the cruise vacation industry worldwide. It owns five cruise brands, which comprise Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, and CDF Croisieres de France. Royal Caribbean Cruises has a market cap of $5.63 billion and is part of the leisure industry. The company has a P/E ratio of 11.7, below the average leisure industry P/E ratio of 11.9 and below the S&P 500 P/E ratio of 17.7. Shares are up 3.2% year to date as of the close of trading on Friday. Currently there are seven analysts that rate Royal Caribbean Cruises a buy, no analysts rate it a sell, and six rate it a hold.

TheStreet Ratings rates Royal Caribbean Cruises as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

On the negative front, LodgeNet Interactive Corporation ( LNET), down 16.5%, Covenant Transportation Group ( CVTI), down 11.1%, Digital Domain Media Group ( DDMG), down 10.7%, and Corinthian Colleges ( COCO), down 8.7%, were all laggards within the services sector with Dollar Tree Stores ( DLTR) being today's services sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).
null

If you liked this article you might like

Royal Caribbean Cruise Set to Sail Through Caribbean Hurricane Disasters?

Carnival and Royal Caribbean CEOs are Resourceful, Jim Cramer Says

Carnival Forced to Change Caribbean Cruise Itineraries to Avoid Irma's Wake

Dow, S&P 500 and Nasdaq at New Records as Promise of Tax Reform Boosts Banks

Stocks Back at Highs as Apple Gains on iPhone 8, iPhone X Release