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.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 9 Most Dangerous Countries for Tourists to Visit

Reign of Terror: The 10 Most Ruthless Politicians in History

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

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!