Royal Caribbean’s Business is Booming

The cruise company has new ships in the water and has been benefiting from new and loyal guests booking trips. Strong consumer spending onboard and pre-cruise purchases bodes well for the company too.

RCL’s second-quarter earnings and revenue results topped consensus estimates. And in its forthcoming earnings report, the company’s per-share earnings are projected to be $5.02, which would be a 30.4% increase from the prior year.

It’s no wonder RCL shares have gained 36% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Royal Caribbean Shares Loved by Big Money

Institutional volumes reveal plenty. In the last year, RCL has enjoyed heavy Big Money buying, which we believe to be institutional accumulation.

Each of the green bars signal unusually large volumes in RCL shares, pushing the stock higher:

Plenty of discretionary names are under accumulation right now. But when you dive into the fundamentals, there’s a special tailwind going on with Royal Caribbean.

Royal Caribbean Fundamental Analysis

Institutional support coupled with a healthy fundamental backdrop makes this company worth investigating. As you can see, RCL has huge sales and earnings growth:

• 3-year sales growth rate (+167.9%)
• 3-year EPS growth rate (+41.1%)

Source: FactSet

Also, the one-year EPS outlook is estimated to increase by +16.6%.

Now it makes sense why the stock has been powering to new heights. RCL is gaining due to its strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

RCL has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report numerous times. The blue bars below show when RCL was a top pick…sailing higher with time.

Tracking unusual volumes reveals the power of money flows.

This is a trait that most superstar stocks exhibit. Today’s money flows often reveal tomorrow’s leaders.

Royal Caribbean Price Prediction

The RCL rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in RCL at the time of publication.

If you are a Registered Investment Advisor (RIA) or a serious investor looking to take your investing to the next level, learn more about the MAPsignals process here.