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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Royal Caribbean Cruises ( RCL) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day up 0.3%. By the end of trading, Royal Caribbean Cruises fell $0.80 (-2.2%) to $35.89 on heavy volume. Throughout the day, 2,768,768 shares of Royal Caribbean Cruises exchanged hands as compared to its average daily volume of 1,621,400 shares. The stock ranged in price between $35.67-$36.50 after having opened the day at $36.36 as compared to the previous trading day's close of $36.69. Other companies within the Services sector that declined today were: Lentuo International ( LAS), down 13.8%, Frontline ( FRO), down 11.8%, ChinaNet Online Holdings ( CNET), down 9.2% and Ku6 Media ( KUTV), down 8.6%.

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 $8.5 billion and is part of the leisure industry. Shares are up 13.9% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate Royal Caribbean Cruises a buy, no analysts rate it a sell, and 5 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 disappointing return on equity, poor profit margins and generally higher debt management risk.

On the positive front, Zale Corporation ( ZLC), up 29.8%, Globus Maritime ( GLBS), up 14.9%, Paragon Shipping ( PRGN), up 11.8% and ENGlobal Corporation ( ENG), up 11.4% , were all gainers within the services sector with Las Vegas Sands ( LVS) being today's featured services sector leader.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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