Top Stock Pick of the Year: RCL

Alphanso’s AI Stock Research picked RCL as one of the top stocks of the year.

Alphanso rating: 9.6/10

Return potential: 24%

This pick stands out because it is experiencing a strong rebound in its business, with soaring demand for ocean-going cruises

Fundamental Metrics:

1. Revenue growth (fwd) of 117% vs sector median 5.5% and EBITDA growth (YoY) of 31% vs sector median of 8% indicates strong market positioning and increasing economies of scale
2. EBIT margin of 17.7% vs. sector median 7.4% and EBITDA margin of 28.5% vs. sector median of 11% suggests strong pricing power
3. $RCL has beaten earning expectations 64% of the time in the last 15 years
4. Re-accelerating top line growth after the pandemic and booming demand for cruises bode well for Royal Caribbean Group’s prospects for near term earnings growth

Technical Metrics: 

Based on the Alphanso model, the stock is trading below the expected channel (range) of $123.5 – $124.8