Royal Caribbean Cruises Ltd. (RCL): Today's Featured Leisure Laggard

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 lower today making it today's featured Leisure laggard. The industry as a whole closed the day up 1%. By the end of trading, Royal Caribbean Cruises fell 36 cents (-1%) to $34.70 on average volume. Throughout the day, 2.2 million shares of Royal Caribbean Cruises exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in price between $34.59-$35.28 after having opened the day at $35.27 as compared to the previous trading day's close of $35.06. Other companies within the Leisure industry that declined today were: Country Style Cooking Restaurant Chain ( CCSC), down 6.6%, Boyd Gaming Corporation ( BYD), down 5.8%, Cosi ( COSI), down 3%, and Carrols Restaurant Group ( TAST), down 2.8%.
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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 $7.67 billion and is part of the services sector. The company has a P/E ratio of 437.5, above the S&P 500 P/E ratio of 17.7. Shares are up 3.1% year to date as of the close of trading on Monday. 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, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

On the positive front, Home Inns & Hotels Management ( HMIN), up 6.8%, Chuy's Holdings ( CHUY), up 6.2%, Orbitz Worldwide ( OWW), up 6.2%, and Granite City Food & Brewery ( GCFB), up 5.4%, were all gainers within the leisure industry with Yum Brands ( YUM) being today's featured leisure industry leader.

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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