Bull Notes Trigger Royal Caribbean Stock Surge

RCL is up just over 36% for the quarter

Deputy Editor
May 21, 2020 at 3:30 PM
facebook X logo linkedin


The shares of Royal Caribbean Cruises Ltd (NYSE:RCL) are up 7.4% to trade at $43.66 today, after receiving a price-target hike to $52 from $48 from Stifel, and an initiation of coverage at Credit Suisse of "outperform" alongside a $67 price target. While its sector peers continue to struggle thanks to coronavirus-related lockdown measures, Wedbush analyst James Hardiman speculates RCL is in a better position financially. However, Royal Caribbean Stock is still facing a 67.2% year-to-date deficit.

Given the current economic climate surrounding the cruise sector, it's no surprise that RCL has suffered on the charts. Despite this, the equity has recently found support at the 60-day moving average. Save for the beginning of January, the trendline remained well overhead; however, RCL has managed to close above it twice in the past week, and is on pace to do so again today.

RCL Chart May 21

All of this action has the majority of analysts piling onto Royal Caribbean stock optimistically. Of the 12 in coverage, seven sport a "strong buy." Conversely, four rate RCL a lukewarm "hold," and just one chimed in with a "sell." Meanwhile, the consensus 12-month price target of $63.93 is a whopping 46.1% premium to current levels. If that premium keeps rising, it could signal some price-target cuts in the near future.

More optimism is being unwound as Royal Caribbean's options pits are jumping with activity. Over 35,000 calls have changed hands today, nearly double the average intraday amount. One of the most popular contracts looks to be the May 45 call, where new positions are being opened.

Lastly, options traders should look toward RCL's attractively priced premium, which, according to Schaeffer's Volatility Index (SVI) of 95%, sits in the 25th percentile of its annual range. However, it's worth noting that the equity has been more volatile than expected during the past 12 months. This is based on its Schaeffer's Volatility Scorecard (SVS) of 82 (out of 100).

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI