Florida-based Royal Caribbean Cruises Ltd. (RCL), with a market cap of $40.7 billion, is a titan in the vacation world, offering unforgettable adventures on its 68-ship fleet. With brands like Royal Caribbean International, Celebrity Cruises, and Silversea, it sails to nearly 1,000 destinations. Expanding beyond the seas, the cruise company brings experiences like Perfect Day at CocoCay and the Royal Beach Club collection to life, creating lasting memories for millions of travelers every year. From ship to shore, Royal Caribbean Cruises continues to lead the way in redefining vacations.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and Royal Caribbean Cruises perfectly fits that description, signifying its substantial size, stability, and dominance in its industry. With a fleet of renowned ships and a global footprint, this status reflects the company’s ability to navigate both calm waters and rough seas, securing its position as a powerhouse in travel.

The cruise major has fallen 6.5% from its 52-week high of $173.37, which it hit on July 23. However, shares of RCL are up 5.9% over the past three months, slightly outperforming the broader Dow Jones Industrials Average’s ($DOWI) 5.5% gains over the same time frame.

In the longer term, shares of RCL stock rose 25.2% on a YTD basis and climbed 66% over the past 52 weeks, outperforming DOWI’s YTD gains of 8.4% and 17.9% returns over the last year.

To confirm the bullish trend, RCL has traded above its 200-day moving average since last October and mostly above its 50-day moving average with a few fluctuations.

RCL has been riding a wave of strong price action, driven by higher pricing on close-in bookings and onboard revenue surges. The company hit its "Trifecta" goals ahead of schedule, reinstating dividends as it expands and captures a larger slice of the global vacation market. RCL is in record-booked territory for 2024 sailings, with consumer spending onboard and pre-cruise purchases outperforming last year.

However, on Jul. 25, RCL shares dipped over 7% after reporting its Q2 earnings results, despite its top and bottom line estimates. Its adjusted EPS of $3.21 exceeded expectations of $2.77, while revenue of $4.1 billion topped forecasts of $4 billion. The company increased its full-year adjusted EPS and expects it to be between $11.35 and $11.45, reflecting a 68% year-over-year growth.

Rival Norwegian Cruise Line Holdings Ltd. (NCLH) has underperformed RCL. NCLH stock has surged 12.2% in the past 52 weeks and is down 6.7% on a YTD basis.

With its recent outperformance compared to the DOWI, analysts remain optimistic about RCL’s prospects. The stock has a consensus rating of “Strong Buy” from the 17 analysts covering it, and the mean price target of $186.22 is a 14.8% premium from current levels.

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On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.