NYSE:RCL

Royal Caribbean Cruises (RCL)

280.00
-13.28 (4.53%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 6, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

Royal Caribbean Cruises (RCL-N) has emerged as a promising option for travelers seeking affordable cruising experiences, reflected in the rising ship prices due to high demand. However, experts highlight potential challenges, notably the recent decline in share prices by 13%. This trend suggests a slowdown in consumer reservations and raises concerns about maintaining strong bookings in the near future. Despite these worries, the company has made significant strides in reducing its debt, contributing to an impressive post-COVID recovery. Additionally, the aging population may further support demand for cruising, making it a potentially solid investment in the long run.

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Consensus
Mixed
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Valuation
Fair Value
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NCLH
BUY

Best among the cruise line stocks given its healthy balance sheet, better than Carnival. Tailwind comes from demand post-pandemic. The #3 S&P stock of 2023, up over 160%. There remains huge demand from Americans. Also, Wall Street no longer expects a hard landing to the economy, which a soft one which benefits the cruise lines.

HOLD

It is close to where it was at the beginning of the pandemic but has issued substantial shares since then. Continue to hold but you could lighten up when the holiday season is over. People are spending more on basics like clothes and shoes this Christmas season and other spending is down.

BUY

Cruise lines have all done well because travel is booming. He'd pick this one, but they'll all do well. Q3 is generally their best quarter. Run up a lot already, so may see a pullback after Q3. Pent-up demand might even last into 2024.

DON'T BUY

Discouraged by Carnival's results today. A strong pass.

BUY

Shut down during Covid, but the cruise stocks are bouncing back. Life is too short thesis: people can't wait to experience things.

DON'T BUY
RCL vs. CCL Before Covid, cruise business was great, a cosy oligopoly. Barriers to entry are high. RCL is best in class for management, brand, ships, and customer mix. At some point everyone has to get on a plane, but not everyone needs to go on a cruise. It's a completely discretionary item. He's sticking with airlines. With these tough times and a recession, stick with companies that have pricing power.
BUY ON WEAKNESS
As economy recovers from pandemic, demand for travel will increase. Believes company to preform well. Rising oil price a concern for the business. Prefers other companies in the sector (Expedia) that do not have capital costs. Current share price is not a good price to buy at.
COMMENT
Last year it bottomed at $10, but they just did a giant stock offering at $91, based on predictions that will sail soon. A juggernaut. It's riding the current reopening rotation.
RISKY

Royal Caribbean is a little better than Carnival, but all these stocks will benefit from the coming travel boom and economic reopening. Keeping ships at port is a big expense over all these months. There's 20-25% recovery left in the cruiselines. He bought at the bottom and has sold some. There's still upside here, but it's a higher risk stock. Sure, some travelers will never cruise again, but once vaccines are in place enough will come back. Cruiselines have recovered from past health scares.

DON'T BUY
An obvious reopening play, but they reported another weak quarter though a great 2022 forecast. The stock has had a huge run and the CEO raised $1.5 billion with an equity offering. Why not? They need the money.
BUY
Cruise stocks are bargains. RCL reported a horrible quarter today, but still rallied 9% today, due to a surge in bookings. A reopening play.
BUY
The cruiselines have really roared back. RCL is the biggest and has the best balance sheet among the big three cruiselines. Down the road, we'll be back on cruises and revenues will return. He likes this business and it will survive. But don't buy 30% of travel, but rather 5-15%. RCL is a quality name because of its balance sheet and large market cap vs. its peers. Also, 2021 bookings are higher than pre-2019 levels.
DON'T BUY
RCL-N vs. CCL-N. He would be cautious on both names. Both businesses will survive but never be the same. There is enough risk investing in safe stocks that you don't need to buy these.
PAST TOP PICK
(A Top Pick Jan 07/19, Up 35%) He still holds it. About 12 times earnings. Cruise lines are growing faster than the economy. He trimmed a little bit of weight. He would not be surprised at $155 in the next year. It is the best managed of the cruise lines. It is a bit of a demographic play.
TOP PICK
He likes the demographic trend that shows greater demand. A solid business and it trades at 11 times earnings. Yield 2.42% (Analysts’ price target is $140.59)
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