Even with strong earnings growth, Royal Caribbean (RCL) dropped from about $173 to a recent low of about $152, where it’s now oversold.
Not only did it just catch support at its 50-day moving average, but it’s also excessively oversold on RSI and Williams’ %R. Better, RCL just raised its adjusted earnings per share outlook to a new range of $11.35 to $11.45 from an older range of $10.70 to $10.90. The company even reinstated a 40-cent dividend, which is payable on Oct. 11.