Royal Caribbean Is Down 20% From Its 52-Week High. Is the Dip Worth Buying?
The country's largest cruise line by market cap is doing better and trading cheaper than you probably think.
The ocean cruising industry faces challenges as all three major players experience double-digit declines over the past year, with Royal Caribbean showing the best performance at a 14% drop. The stock has fallen by 20% from its 52-week high. The industry, once a turnkey success story, appears to be encountering difficulties. Royal Caribbean was the first to return to profitability in 2023 and reinstituted its quarterly dividend.
However, the recent war with Iran has inflicted two major blows: rising oil prices, a significant cost on sailings, and heightened safety concerns that could deter bookings. Despite these issues, the company raised its earnings guidance and expects revenue growth of 9% in 2026. Royal Caribbean's stock, which yields a 1.7% dividend, is currently valued at 16 times its mid-year adjusted earnings guidance.
Written by urgent.news from Yahoo Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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