Miami-based Royal Caribbean Cruises Ltd. (RCL) is a leading global cruise operator, strategically positioned within the leisure travel industry. With a market cap of $70.1 billion, the company operates a portfolio of well-established brands, including Royal Caribbean International, Celebrity Cruises, and Silversea. 

Companies worth $10 billion or more are generally described as “large-cap stocks,” Royal Caribbean fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the cruise industry. The company continues to benefit from yield optimization, strong onboard revenue streams, and cost containment initiatives. It has also made significant strides in deleveraging, aided by improved free cash flow and a disciplined approach to capital allocation.

RCL stock has plunged 7.8% from its 52-week high of $279.89 met recently on June 9. RCL has surged 24.1% over the past three months, outperforming the S&P 500 Index’s ($SPX) 8.3% uptick during the same time frame.

RCL has soared 11.9% in 2025 and 66.2% over the past 52 weeks, significantly outperforming $SPX’s 1.6% gains on a YTD basis and 10% returns over the past year.

To confirm the overall bullish trend, RCL has been trading above its 50-day and 200-day moving averages since the end of April. 

On April 29, shares of Royal Caribbean edged higher marginally following the release of its Q1 2025 results. Revenue rose 7.3% year-over-year to $4 billion, falling just short of consensus estimates. However, the bottom line was notably stronger, adjusted net income surged 53.1% to $2.71 per share, surpassing forecasts by 7.1%, driven by strong close-in demand, favorable pricing, and lower costs, some of which benefited from timing-related efficiencies. 

In a sign of continued momentum, the company raised its full-year 2025 adjusted EPS guidance to $14.55–$15.55, reinforcing investor confidence in its forward outlook.

In the competitive cruise industry, Royal Caribbean has surpassed its peer Carnival Corporation & plc’s (CCL) 10.1% decline this year and 35.7% returns over the past year.

Among the 25 analysts covering the RCL stock, the consensus rating is a “Strong Buy.” Its mean price target of $274.56 indicates a 6.4% upside potential from current price levels.