Royal Caribbean Cruises (RCL) Leads The Pack In Pre-Market Activity

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.

Trade-Ideas LLC identified Royal Caribbean Cruises ( RCL) as a pre-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 $213.6 million.
  • RCL traded 54,432 shares today in the pre-market hours as of 9:06 AM.
  • RCL is up 2% today from Friday's close.

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More details on RCL:

Royal Caribbean Cruises, Ltd. operates as a cruise company. The company operates cruisers under the Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisieres de France, and TUI Cruises brand names. The stock currently has a dividend yield of 1.6%. RCL has a PE ratio of 21. Currently there are 12 analysts that rate Royal Caribbean Cruises a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Royal Caribbean Cruises has been 2.6 million shares per day over the past 30 days. Royal Caribbean Cruises has a market cap of $16.4 billion and is part of the services sector and leisure industry. The stock has a beta of 1.07 and a short float of 3.9% with 2.41 days to cover. Shares are down 9.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Royal Caribbean Cruises as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 66.66% and other important driving factors, this stock has surged by 40.87% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, RCL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ROYAL CARIBBEAN CRUISES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ROYAL CARIBBEAN CRUISES LTD increased its bottom line by earning $3.42 versus $2.14 in the prior year. This year, the market expects an improvement in earnings ($4.55 versus $3.42).
  • 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 71.0% when compared to the same quarter one year prior, rising from $26.46 million to $45.23 million.
  • Net operating cash flow has increased to $426.43 million or 35.03% when compared to the same quarter last year. In addition, ROYAL CARIBBEAN CRUISES LTD has also vastly surpassed the industry average cash flow growth rate of -16.93%.

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