Goldman Sachs is betting on these consumers in 2026: Check out the stock recommendations.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 08 2025
0mins
Source: MarketWatch
Consumer Confidence: Goldman Sachs reports that the middle-income consumer is performing well and is expected to drive growth in the upcoming year.
Stock Market Outlook: Analysts predict that stocks associated with the middle-income demographic will continue to outperform in the near future.
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Analyst Views on RCL
Wall Street analysts forecast RCL stock price to rise
16 Analyst Rating
12 Buy
4 Hold
0 Sell
Strong Buy
Current: 261.370
Low
275.00
Averages
327.80
High
400.00
Current: 261.370
Low
275.00
Averages
327.80
High
400.00
About RCL
Royal Caribbean Cruises Ltd. is a cruise company, which owns and operates three global cruise brands: Royal Caribbean, Celebrity Cruises and Silversea Cruises. It also has an interest in TUI Cruises GmbH, which operates the German brands TUI Cruises and Hapag-Lloyd Cruises. Its ships offer a selection of worldwide itineraries that call on approximately 1,000 destinations on all seven continents. Royal Caribbean offers cruises and land destinations that generally feature a casual ambiance, as well as a variety of activities and entertainment venues. Celebrity Cruises offers a range of itineraries to destinations, including Alaska, Asia, Australia, Bermuda, Canada, the Caribbean, Europe, the Galapagos Islands, Hawaii, New Zealand, the Panama Canal and South America, with cruise lengths ranging from three to 14 nights. It also offers a range of private land destinations through Perfect Day at CocoCay and Royal Beach Club collection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Innovative Waterpark: Hero will introduce Category 6, the largest waterpark at sea, featuring new family raft slides and thrilling surf simulators, enhancing the fun of family adventures and further solidifying Royal Caribbean's leadership in the family travel market.
- Diverse Accommodation Options: The new ship offers various family-friendly accommodations, including the first-of-its-kind three-deck Ultimate Family Treehouse, accommodating up to 12 guests, catering to multi-generational families and enhancing comfort and uniqueness in vacation experiences.
- Rich Dining Experiences: Hero will feature 28 dining venues, including the newly introduced Orleans Parish Supper Club and Royal Railway – Hero Station, combining entertainment and cuisine to provide diverse dining options for family travelers, enriching the overall vacation experience.
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See More
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- Accelerated Rewards Mechanism: The new cards offer 3X and 4X points on everyday spending and cruise vacations, respectively, targeting different spending categories to enhance customer experience and loyalty, thereby driving overall revenue growth for the company.
- Enhanced Travel Benefits: The Royal ONE credit card provides travel perks such as priority boarding, anniversary rewards, and no foreign transaction fees, while the Royal ONE Plus card adds priority luggage handling and TSA PreCheck®/Global Entry credit, further enriching the vacation experience for customers.
- Expansion of Loyalty Ecosystem: The introduction of these new credit cards aligns with Royal Caribbean Group's loyalty vision, aiming to simplify the earning and redemption of rewards, thereby increasing customer brand loyalty and driving future business growth.
See More
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- New Family Vacation Option: Royal Caribbean has announced that its fourth Icon Class ship, Hero of the Seas, will arrive in Miami in August 2027, marking a new era of family adventure and enhancing the vacation experience for families.
- Innovative Amenities: Hero will feature the most pools at sea, a record-breaking 28 dining venues, and cooking classes for all ages, aiming to provide diverse entertainment options that enhance customer satisfaction.
- Multigenerational Design: The new ship will introduce accommodations like the three-story Ultimate Family Treehouse, specifically designed for multigenerational families, catering to the needs of different family members and enhancing the joy of family reunions.
- Booking Information: Vacations on Hero will soon be available on Royal Caribbean's website, with Crown & Anchor Society members able to book starting April 1, ahead of the official opening on April 2, demonstrating the company's commitment to customer loyalty.
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- Fuel Price Volatility Risk: Carnival's stock is trading at a discount due to volatility in fuel prices linked to the Iran war, with analysts noting the company's unhedged exposure to fuel risks, leading to a 23.3% decline since the conflict began.
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- Demand Resilience: Despite operational challenges posed by the Middle East conflict, Carnival is expected to weather these issues due to its strong value proposition and flexibility in responding to demand shifts, with the market underestimating the resilience of experience-led demand, as approximately 85% of 2026 bookings are already secured at healthy pricing.
See More
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- Rising Inflation Expectations: Consumers now anticipate an average inflation rate of 3.8% over the next 12 months, indicating heightened concerns about the economic outlook, which could prompt more cautious spending behavior and exacerbate the risk of economic slowdown.
- Market Reaction: Stocks such as Opendoor, PENN Entertainment, and Bally's experienced significant declines, with Opendoor down 3.8%, PENN down 5.7%, and Bally's down 6.2%, reflecting the market's sensitivity to negative news and potentially providing investors with opportunities to buy quality stocks at lower prices.
- Bally's Stock Volatility: Bally's shares have seen 61 moves greater than 5% in the past year; despite today's drop, the market perceives the news as meaningful but not fundamentally altering its view of the business, especially following its partnership with Intralot to launch new lottery brands, which may support future growth.
See More
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- New Family Vacation Standard: Royal Caribbean has announced that its fourth Icon Class ship, Hero of the Seas, will arrive in Miami in August 2027, setting a new benchmark for family vacations with nine pools and 28 dining venues catering to all ages.
- Innovative Waterpark: Hero will introduce Category 6, the largest waterpark at sea, featuring new family raft slides and thrilling surf simulators, enhancing the fun of family adventures and further solidifying Royal Caribbean's leadership in the family travel market.
- Diverse Accommodation Options: The new ship offers various family-friendly accommodations, including the first-of-its-kind three-deck Ultimate Family Treehouse, accommodating up to 12 guests, catering to multi-generational families and enhancing comfort and uniqueness in vacation experiences.
- Rich Dining Experiences: Hero will feature 28 dining venues, including the newly introduced Orleans Parish Supper Club and Royal Railway – Hero Station, combining entertainment and cuisine to provide diverse dining options for family travelers, enriching the overall vacation experience.
See More
Royal Caribbean Launches New Credit Cards for Travelers
- Credit Card Innovation: Royal Caribbean Group partners with Bank of America to launch the Royal ONE™ and Royal ONE Plus™ credit cards, marking the industry's first tri-branded cards designed to simplify how customers earn and redeem rewards across Royal Caribbean, Celebrity Cruises, and Silversea, thereby enhancing customer loyalty and overall experience.
- Optimized Rewards Mechanism: The new cards allow for rapid point accumulation on both everyday spending and vacation purchases, with the Royal ONE program offering cardholders a convenient way to redeem rewards across brands, which is expected to attract more customers into the loyalty ecosystem.
- Enhanced Travel Benefits: The Royal ONE card provides perks such as priority boarding, a $100 anniversary reward, and Visa Signature® travel protections, while the Royal ONE Plus card offers priority suite boarding, a $200 anniversary reward, and a $120 TSA PreCheck®/Global Entry credit, significantly enhancing the experience for frequent travelers.
- Market Expansion Strategy: Royal Caribbean Group plans to expand its private destinations from three to eight by 2028 and enter the river cruising market in 2027, and with the launch of the new credit cards, it aims to further solidify its leadership position in the global vacation market.
See More
Royal Caribbean and Bank of America Launch Co-Branded Credit Cards
- Industry First Credit Cards: Royal Caribbean Group and Bank of America have launched the Royal ONE™ and Royal ONE Plus™ credit cards, enabling consumers to earn and redeem rewards flexibly across Royal Caribbean, Celebrity Cruises, and Silversea, marking the first tri-branded credit card in the cruise industry.
- Accelerated Rewards Mechanism: The new cards offer 3X and 4X points on everyday spending and cruise vacations, respectively, targeting different spending categories to enhance customer experience and loyalty, thereby driving overall revenue growth for the company.
- Enhanced Travel Benefits: The Royal ONE credit card provides travel perks such as priority boarding, anniversary rewards, and no foreign transaction fees, while the Royal ONE Plus card adds priority luggage handling and TSA PreCheck®/Global Entry credit, further enriching the vacation experience for customers.
- Expansion of Loyalty Ecosystem: The introduction of these new credit cards aligns with Royal Caribbean Group's loyalty vision, aiming to simplify the earning and redemption of rewards, thereby increasing customer brand loyalty and driving future business growth.
See More
Royal Caribbean's Hero of the Seas to Arrive in Miami in August 2027
- New Family Vacation Option: Royal Caribbean has announced that its fourth Icon Class ship, Hero of the Seas, will arrive in Miami in August 2027, marking a new era of family adventure and enhancing the vacation experience for families.
- Innovative Amenities: Hero will feature the most pools at sea, a record-breaking 28 dining venues, and cooking classes for all ages, aiming to provide diverse entertainment options that enhance customer satisfaction.
- Multigenerational Design: The new ship will introduce accommodations like the three-story Ultimate Family Treehouse, specifically designed for multigenerational families, catering to the needs of different family members and enhancing the joy of family reunions.
- Booking Information: Vacations on Hero will soon be available on Royal Caribbean's website, with Crown & Anchor Society members able to book starting April 1, ahead of the official opening on April 2, demonstrating the company's commitment to customer loyalty.
See More
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- Rating Upgrade: HSBC upgraded Carnival's stock from hold to buy, trimming its price target from $33.60 to $30.10, which still implies about a 24% upside from Friday's close, indicating long-term confidence in the stock.
- Fuel Price Volatility Risk: Carnival's stock is trading at a discount due to volatility in fuel prices linked to the Iran war, with analysts noting the company's unhedged exposure to fuel risks, leading to a 23.3% decline since the conflict began.
- Earnings Uncertainty: HSBC analysts acknowledge greater near-term earnings uncertainty for Carnival compared to peers like Royal Caribbean (RCL), which benefit from derivative protection, yet Carnival trades at around 10 times forward earnings, significantly below the two-year average of 12.4.
- Demand Resilience: Despite operational challenges posed by the Middle East conflict, Carnival is expected to weather these issues due to its strong value proposition and flexibility in responding to demand shifts, with the market underestimating the resilience of experience-led demand, as approximately 85% of 2026 bookings are already secured at healthy pricing.
See More
Consumer Sentiment Plummets, Impacting Stock Market
- Consumer Confidence Drop: The University of Michigan's survey revealed a March consumer sentiment index of 55.3, the lowest this year, primarily driven by financial concerns stemming from the Iran war, particularly among middle and higher-income households, which may lead to reduced consumer spending and impact corporate earnings and economic growth.
- Rising Inflation Expectations: Consumers now anticipate an average inflation rate of 3.8% over the next 12 months, indicating heightened concerns about the economic outlook, which could prompt more cautious spending behavior and exacerbate the risk of economic slowdown.
- Market Reaction: Stocks such as Opendoor, PENN Entertainment, and Bally's experienced significant declines, with Opendoor down 3.8%, PENN down 5.7%, and Bally's down 6.2%, reflecting the market's sensitivity to negative news and potentially providing investors with opportunities to buy quality stocks at lower prices.
- Bally's Stock Volatility: Bally's shares have seen 61 moves greater than 5% in the past year; despite today's drop, the market perceives the news as meaningful but not fundamentally altering its view of the business, especially following its partnership with Intralot to launch new lottery brands, which may support future growth.
See More
