Royal Caribbean: Buy More As It Dips, Double Digit Growths Ahead

Summary:

  • While RCL has outperformed the wider market, it was not able to escape the recent market correction surrounding high growth stocks.
  • Even so, we are maintaining our Buy rating, attributed to the improved margin of safety to our long-term PT, accelerated profitable growth prospects, and reinstated dividends.
  • With bookings still growing and demand remaining strong, it is unsurprising that RCL has already achieved its Trifecta Goals eighteen months early for the twelve months ending June 30, 2024.
  • The growing customer deposit has also led to the raised FY2024 adj EPS guidance, as similarly observed in CCL’s robust earning results.
  • With RCL still reasonably valued as the consensus raised their forward estimates, we believe that the stock remains a compelling Buy for growth and dividend oriented investors.

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We previously covered Royal Caribbean Cruises (NYSE:RCL) in May 2024, discussing its excellent FQ1’24 earnings call and the raised FY2024 profitability guidance, with it further demonstrating its excellent reversal from the hyper-pandemic woes.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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