Whether you're a seasoned investor or just starting out, you should aim to maximize your returns by investing confidently in the stock market.
The use of a tried-and-true process to direct purchase and sale choices is also common among investors. Use the Zacks Style Scores—indicators that rank companies according to three popular investing types: growth, momentum, and value—to identify winning stocks based on your preferred investing approach.
Why This Value Stock Is Deserving of Your Attention as an Investor Investors that focus on value, as opposed to growth or momentum, look for cheap stocks and try to figure out which companies are trading at a discount to their actual worth before the market as a whole does. To find the best bargain companies, the Value Style Score uses ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow.
Cruise line RCL The cruise line Royal Caribbean was founded in 1985 and has its headquarters in Miami. It is the owner and operator of the Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises brands, which are recognized worldwide. In addition, it owns half of the shares in a partnership with TUI AG, the parent company of the TUI Cruises brand.
With a Value Style Score of B and a VGM Score of B, RCL is currently ranked #1 (Strong Buy) by Zacks. Shares of Royal Caribbean are currently selling at a forward P/E of 14X, which is lower than the 17.2X P/E for the Leisure and Recreation Services industry. Moreover, RCL's PEG Ratio is 0.5, and its Price/Cash Flow and Price/Sales ratios are 10.6X and 2.6X, respectively.
Profitability is another metric that many value investors track closely. In the past 60 days, eight analysts have raised their profits estimates for RCL,
leading to a $0.86 increase to $10.01 per share for 2024 according to the Zacks Consensus Estimate. On average, RCL's earnings surprised investors by 26.4% per share.
RCL has outstanding fundamentals in terms of earnings and valuation, a solid Zacks Rank, and excellent Value and VGM Style Scores, so it should be considered by investors.
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