Royal Caribbean Cruises Ltd. (RCL): Today's Featured Leisure 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 Leisure industry higher today making it today's featured leisure winner. The industry as a whole closed the day up 0.5%. By the end of trading, Royal Caribbean Cruises rose 49 cents (1.6%) to $30.86 on average volume. Throughout the day, 2.5 million shares of Royal Caribbean Cruises exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $30.57-$31.10 after having opened the day at $30.87 as compared to the previous trading day's close of $30.37. Other companies within the Leisure industry that increased today were: MakeMyTrip ( MMYT), up 8.8%, Ctrip.com International ( CTRP), up 6.1%, Arcos Dorados Holdings ( ARCO), up 5.4%, and Hyatt Hotels Corporation ( H), up 4.1%.
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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 $6.45 billion and is part of the services sector. The company has a P/E ratio of 13.5, equal to the average leisure industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are up 19.5% year to date as of the close of trading on Thursday. 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, Frisch's Restaurants ( FRS), down 3.8%, Marcus Corporation ( MCS), down 3.6%, Multimedia Games ( MGAM), down 3.4%, and Cracker Barrel Old Country Store ( CBRL), down 3.1%, were all laggards within the leisure industry with Starbucks Corporation ( SBUX) being today's leisure industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

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