Is Royal Caribbean Cruises Ltd. (RCL) Stock A Good Buy?

Everybody loves taking a nice cruise, right? Well, if you answered yes to this question you probably know a thing or two about Royal Caribbean Cruises Ltd. (NYSE:RCL). Royal Caribbean has been the king of the high seas for many years, and despite some issues as of late, the company continues to be one of the major players.

Of course, the amount of fun you have while floating around the ocean has nothing to do with how the company’s stock will perform. Many people find themselves asking the question, is Royal Caribbean stock a good buy?

For more information on where things stand right now with Royal Caribbean Cruises Ltd. (NYSE:RCL), we don’t have to look any further than a recent CNBC video interview with company Chairman and CEO Richard Fain.

Royal Bank of Canada (USA) (NYSE:RY)

In the interview, Fain talked extensively about the outbreak. From a PR and customer service perspective, he is doing all he can to downplay the incident as a means of keeping future customers interested in the company while also hedging against the possibility of a hit on Wall Street. He said, “Obviously we will be compensating the passengers. Our people really do feel very badly that something like this happens, but unfortunately this is a bad time of the year.”

From there, Fain is asked about what he thinks this will do to future bookings for Royal Caribbean Cruises Ltd. (NYSE:RCL). He said, “I don’t think it is has a big impact on bookings because most people understand just how common this thing is. It is the second most common illness in America.”

Okay, enough talk about the illness that brought Explorer of the Seas back to port prematurely. What does the future hold for the company’s stock price? Despite the fact that Royal Caribbean ran into some difficulties during 2013, it appears that the seas have calmed and 2014 could be better for the company.

The economy recovering, which means more people will be spending money on vacations. Fain noted that much of the available space for 2014 was booked during 2013 as the company looked to capitalize on its marketing and promotion efforts. On one side of things this is good to hear because it means that they got a jump on the action. On the downside, it could limit how much the company is able to benefit from the recovery.


Valued at less than 13 times earnings, Royal Caribbean Cruises Ltd. (NYSE:RCL) seems to be a good buy at the time being. If you can stomach what happened in 2013, getting in now may allow you to see some nice gains as the next 12 months wear on. Are you going to get in on the action, just the same as these hedge fund managers: Manish Chopra, Brad Gerstner, and Zac Hirzel and others that revealed ownership of Royal Caribbean shares in their 13F filings.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Biggest Airports in the World

The 5 Most Gang Infested Cities In America

The 34 Smartest Countries in the World

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!