Trade-Ideas: Royal Caribbean Cruises (RCL) Is Today's Post-Market Leader Stock

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.

Trade-Ideas LLC identified Royal Caribbean Cruises ( RCL) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Royal Caribbean Cruises as such a stock due to the following factors:

  • RCL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $60.8 million.
  • RCL is up 8.1% today from today's close.

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More details on RCL:

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. The stock currently has a dividend yield of 1.3%. RCL has a PE ratio of 105.6. Currently there are 8 analysts that rate Royal Caribbean Cruises a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Royal Caribbean Cruises has been 1.7 million shares per day over the past 30 days. Royal Caribbean Cruises has a market cap of $7.9 billion and is part of the services sector and leisure industry. The stock has a beta of 2.68 and a short float of 3.7% with 3.64 days to cover. Shares are up 5.6% year to date as of the close of trading on Thursday.

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

TheStreet Quant 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.

Highlights from the ratings report include:
  • RCL's revenue growth has slightly outpaced the industry average of 3.3%. Since the same quarter one year prior, revenues slightly increased by 3.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 777.4% when compared to the same quarter one year prior, rising from -$3.65 million to $24.75 million.
  • ROYAL CARIBBEAN CRUISES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ROYAL CARIBBEAN CRUISES LTD reported lower earnings of $0.07 versus $2.78 in the prior year. This year, the market expects an improvement in earnings ($2.28 versus $0.07).
  • The gross profit margin for ROYAL CARIBBEAN CRUISES LTD is currently lower than what is desirable, coming in at 29.70%. Regardless of RCL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, RCL's net profit margin of 1.31% is significantly lower than the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, ROYAL CARIBBEAN CRUISES LTD's return on equity significantly trails that of both the industry average and the S&P 500.

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