According to the latest SEC Filings, firms & funds owning shares of Royal Caribbean Cruises Ltd. (NYSE:RCL) have decreased their positions by -0.55%. Institutions now own 73.70% of the company.
Investors may be trying to get a read on the next big stock market move. Projecting which stocks are ready to make a run can be tricky. Many investors will track the market from various angles in order to make the best educated decisions. Keeping tabs on all the important economic indicators can help when analyzing the overall health of the stock market. Some financial strategists may be projecting a sharp downturn over the next few months while others believe that there is no tangible reason for the market to lose the near-term momentum.
TECHNICAL ANALYSIS
Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward. Analysts use common formulas and ratios to accomplish this.
Royal Caribbean Cruises Ltd. (NYSE:RCL)’s RSI (Relative Strength Index) is 41.49. RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.
FUNDAMENTAL ANALYSIS
Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet. These numbers are then crunched to create theoretical valuations of companies.
Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares. EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital. Royal Caribbean Cruises Ltd.’s EPS is 8.42. Their EPS should be compared to other companies in the Services sector.
Price-to-Earnings Ratio is the current share price divided by annual earnings per share. P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels. Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively. Royal Caribbean Cruises Ltd.’s P/E ratio is 12.54.
Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth. PEG is created by dividing P/E by the projected rate of earnings growth. Royal Caribbean Cruises Ltd.’s PEG is 1.05.
RETURNS AND RECOMMENDATION
Shareholders can expect a return on equity of 16.40%. Calculated by dividing Royal Caribbean Cruises Ltd.’s annual earnings by its total assets, investors will note a return on assets of 7.30%. Finally, Royal Caribbean Cruises Ltd.’s return on investment stands at 9.70% when you divide the shareholder’s return by the cost. The consensus analysts recommendation at this point stands at 1.70 for Royal Caribbean Cruises Ltd. (NYSE:RCL). This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.
As the next company earnings season comes into focus, investors may be closely following the numbers as they are released. Some investors will choose to stay away from any big trades during earnings season. Others will opt to try to capitalize on stock price fluctuations that may occur before and after the earnings report. Wall Street analysts may be getting ready to make estimate revisions over the next couple of weeks. Investors have the ability to follow analyst estimates and recommendations when undertaking stock analysis. Investors may choose to review analyst projections and then make their own decisions on what they think the company will report for the quarter.
Disclaimer: The views, opinions, and information expressed in this article are those of the authors and do not necessarily reflect the official policy or position of any company stakeholders, financial professionals, or analysts. Examples of analysis performed within this article are only examples. They should not be utilized to make stock portfolio or financial decisions as they are based only on limited and open source information. Assumptions made within the analysis are not reflective of the position of any analysts or financial professionals.
