Royal Caribbean Cruises Ltd. (NYSE:RCL) – Fast Growth Play with Potential Stock Upside

Shares of Royal Caribbean Cruises Ltd. (NYSE:RCL) have been experiencing an accelerated earnings and sales growth over the past 5 years.  Over that time frame the firm has seen earnings growth of 31.90% and sales growth of 3.60%.

Investing in the stock market comes with inherent risk. Some stocks are much riskier than others, but there will always be some level of risk no matter which stocks are chosen. Individual investors managing their own portfolios are constantly on the lookout for investing tips or some kind of information that may confirm their gut feeling about a certain stock. Investors may want to be wary when listening to stock investment advice from friends, family members, or even trusted colleagues. People are usually quick to tell others about the winning stocks that they have picked in the past, but they may not be very forthcoming about discussing those portfolio clunkers. After hearing about the next big stock, investors can always do the research and check the prospect out for themselves.

While the firm has enjoyed the upward movement, it’s important to look at analyst expectations and where the company is headed from here.  On a consensus basis, analysts are projecting EPS growth of 11.40% for next year and have a $139.79 one year price target on the stock.   The stock recently traded at $121.16.

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Royal Caribbean Cruises Ltd. (NYSE:RCL)‘s stock was 23.90%.  Over the last week of the month, it was 0.14%, 8.43% over the last quarter, and  5.49% for the past six months. 

Earnings Per Share (EPS):

When a company shows a steady upwards earnings trend, it is a good indicator that the company will dominate companies with a more volatile earnings trend. Royal Caribbean Cruises Ltd. (NYSE:RCL)’s EPS is 8.58.  Last year, their EPS growth was 13.60% while their EPS growth over the past five years is 31.90%.  Analysts are predicting Royal Caribbean Cruises Ltd.’s stock to grow 11.40% over the next year and 12.40% over the next five.

The investing world can be an exciting yet scary place. It is an ever-changing environment filled with profits, losses, and everything in-between. There are always new challenges waiting right around the corner for the individual investor. Just when things seem stable and steady, some unexpected event can send markets into a tizzy. Most investors try hard to create a stock portfolio that can stand on its own during the stormy periods. Unsettling market conditions come with the territory, but knowing how to deal with these conditions can separate the winners from the losers over the long run.

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