Sell: Royal Caribbean Cruises (RCL)
From Dow Theory Forecasts
Updated from Wall Street’s Best Investments 795, July 19, 2017
Royal Caribbean Cruises (RCL) is being removed from the Buy and Long-Term Buy lists. Cruise-line stocks have struggled recently, with Royal Caribbean shares down 10% in the past month. Recent weakness in this cyclical group can be partly blamed on rising fuel prices.
U.S. oil prices are up 8% this year and hover near their highest level since December 2014. Fuel represents 14% of operating costs for Royal Caribbean. That share-price softness combined with the Dow Theory moving to bearish camp, is enough to push us to move to the sidelines on Royal Caribbean. Royal Caribbean is now rated B (average) and should be sold.
Richard Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, April 16, 2018