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 1.1%. By the end of trading, Royal Caribbean Cruises fell $0.42 (-1.2%) to $35.71 on average volume. Throughout the day, 2,684,725 shares of Royal Caribbean Cruises exchanged hands as compared to its average daily volume of 2,331,900 shares. The stock ranged in price between $35.44-$36.20 after having opened the day at $35.73 as compared to the previous trading day's close of $36.13. Other companies within the Leisure industry that declined today were: Flanigan's ( BDL), down 16.3%, Asia Entertainment & Resources ( AERL), down 4.8%, Cosi ( COSI), down 4.6% and Pizza Inn Holdings ( PZZI), down 2.8%.
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Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. It owns five cruise brands comprising Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, and CDF Croisieres de France. Royal Caribbean Cruises has a market cap of $7.9 billion and is part of the services sector. The company has a P/E ratio of 164.2, above the S&P 500 P/E ratio of 17.7. Shares are up 6.3% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Royal Caribbean Cruises a buy, no analysts rate it a sell, and 6 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 increase in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins.

On the positive front, Scientific Games Corporation ( SGMS), down 9.8%, Orbitz Worldwide ( OWW), down 6.5%, Century Casinos ( CNTY), down 5.0% and Isle of Capri Casinos ( ISLE), down 4.7% , were all gainers within the leisure industry with Starbucks Corporation ( SBUX) 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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