At the end of July, we said, “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.”
At the time, RCL traded at about $156. Today, it’s up to $160.26 and could rally back to $170. Helping, Morgan Stanley just raised its price target from $140 to $154. Even better, the company is now taking bookings out to 2026 with explosively growing demand.