Royal Caribbean: Not Priced For Perfecta

Royal Caribbean Cruises remains on a robust growth trajectory, despite higher fuel costs and modest Q2'26 revenue growth of 6.4%. Bookings are at record prices and volumes, supporting strong forward guidance, though 2026 revenue growth was revised slightly down to 9%. Capital returns remain solid with a 2% dividend and $1B in H1'26 buybacks, but nearly $23B in debt poses a risk if travel is disrupted. The stock trades at 16x 2027 EPS estimates with management targeting a 20% CAGR, suggesting the market isn't fully pricing in the forecast growth. Looking for more investing ideas like this one? Get them exclusively at Out Fox The Street. Learn More » Royal Caribbean Cruises ( RCL ) is surging back towards all-time highs as the cruise line sector shakes off higher fuel costs and geopolitical issues. The company didn't even report a robust quarter, yet the business This article was written by Stone Fox Capital 56.37K Followers Follow Stone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager. Mark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potential multibaggers while managing portfolio risk via diversification. Features include various model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and access to community chat and direct chat with Mark for questions. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock, you should do your own research and reach your own conclusion or consult a financial advisor. Investing includes risks, including loss of principal. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.