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Miami-based Royal Caribbean Cruises Ltd. (RCL) operates as a global cruise vacation company. With a market cap of $69 billion, the company operates cruise brands like Royal Caribbean International, Celebrity Cruises, Azamara, and Silversea Cruises and holds interest in TUI Cruises, Pullmantur, and SkySea Cruises.
The cruise giant has significantly outperformed the broader market over the past year. RCL stock has soared 119% over the past 52 weeks and 11.1% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 20.5% gains over the past year and 2.9% returns in 2025.
Zooming in further, RCL has also outpaced the industry-focused Defiance Hotel, Airline, and Cruise ETF’s (CRUZ) 28.8% surge over the past year and 4.5% gains in 2025.
Royal Caribbean Cruises’ stock prices soared 12% after the release of its impressive Q4 results on Jan. 28. Driven by the solid demand across its brands, the company’s total revenues for the quarter surged 12.9% year-over-year to $3.8 billion. Furthermore, the company observed a significant growth in profitability, its adjusted net income surged 34.4% year-over-year to $445 million and its adjusted EPS of $1.63 surpassed the Street’s expectations by 8.7%. Meanwhile, observing the solid business momentum the company gave an impressive EPS guidance range of $2.43 to $2.53 for Q1 boosting investor confidence.
For the current fiscal 2025, ending in December, analysts expect RCL to deliver a 26.8% year-over-year growth in EPS to $14.96. Furthermore, the company has a robust earnings surprise history. It has surpassed the Street’s bottom-line expectations in each of the past four quarters.
Among the 21 analysts covering the RCL stock, the consensus rating is a “Strong Buy.” That’s based on 15 “Strong Buy,” one “Moderate Buy,” and five “Hold” ratings.
This configuration has been mostly stable over the past months.
On Feb. 7, Tigress Financial analyst Ivan Feinseth reiterated a “Buy” rating on RCL, while setting a price target of $330.
RCL’s mean price target of $281.41 represents a 9.8% premium to current price levels, while its street-high target of $330 suggests a 28.8% upside potential.
