Is Invesco Leisure and Entertainment ETF (PEJ) a Strong ETF Right Now?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2024
0mins
Source: NASDAQ.COM
- Invesco Leisure and Entertainment ETF (PEJ): Launched in 2005, this smart beta exchange-traded fund offers broad exposure to the Consumer Discretionary ETFs category.
- Smart Beta ETFs: These funds track non-cap weighted strategies based on specific fundamental characteristics for stock selection aiming at better risk-return performance.
- Fund Sponsor & Index: Managed by Invesco, PEJ seeks to match the Dynamic Leisure & Entertainment Intellidex Index's performance, focusing on U.S. leisure and entertainment companies.
- Cost & Other Expenses: With an expense ratio of 0.58%, PEJ has a 12-month trailing dividend yield of 0.50% and operating expenses that are competitive within its space.
- Sector Exposure and Top Holdings: The fund has a significant allocation to the Consumer Discretionary sector, with top holdings like Royal Caribbean Cruises Ltd, Doordash Inc, and Live Nation Entertainment Inc.
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Analyst Views on RCL
Wall Street analysts forecast RCL stock price to fall
16 Analyst Rating
12 Buy
4 Hold
0 Sell
Strong Buy
Current: 333.750
Low
275.00
Averages
327.80
High
400.00
Current: 333.750
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.
Royal Caribbean Announces Public Offering of Senior Unsecured Notes
- Public Offering Announcement: Royal Caribbean has commenced a public offering of senior unsecured notes, intending to use the proceeds to refinance senior notes maturing in 2026 and repay existing debt, thereby optimizing its capital structure and reducing financial costs.
- Underwriter Lineup: J.P. Morgan, Morgan Stanley, and PNC Capital Markets are acting as lead underwriters for the offering, reflecting market confidence in the company's financing needs while providing robust market support for the issuance.
- Registration Statement Validity: The notes offering is being conducted under an automatic shelf registration statement filed on February 29, 2024, which became effective upon filing, ensuring compliance and transparency in the issuance process, thus attracting more investor participation.
- Forward-Looking Statement Risks: The company highlighted that its future performance may be influenced by various risk factors, including economic conditions, fluctuations in operating costs, and market competition, which could affect investor expectations regarding the company's future performance.
See More
Royal Caribbean Announces $1.25 Billion Bond Offering
- Bond Offering Size: Royal Caribbean has announced a public offering of $1.25 billion in senior unsecured notes with interest rates of 4.750% and 5.250%, maturing in 2033 and 2038 respectively, reflecting the company's strong capital market presence and proactive approach to future funding needs.
- Clear Use of Proceeds: The net proceeds from this bond issuance will be utilized to refinance senior notes maturing in 2026 and to repay existing debt, indicating the company's strategic intent to optimize its capital structure and reduce financial costs.
- Strong Underwriter Lineup: With J.P. Morgan, Morgan Stanley, and PNC Capital Markets acting as lead underwriters, the offering enhances market confidence in the bonds while providing the company with expert financing support.
- Compliance and Transparency: The offering is made under an automatic shelf registration statement, ensuring compliance and transparency, which further boosts investor trust in the company's financial health.
See More
Royal Caribbean Announces $1.25 Billion Bond Offering
- Bond Offering Size: Royal Caribbean has announced a public offering of $1.25 billion in senior unsecured notes, including 4.750% notes due in 2033 and 5.250% notes due in 2038, reflecting the company's strong capital market financing capabilities.
- Clear Use of Proceeds: The net proceeds from this bond offering will be used to refinance senior debt maturing in 2026 and repay existing indebtedness, including potential term loans, thereby optimizing the company's capital structure and financial flexibility.
- Strong Underwriter Lineup: J.P. Morgan Securities, Morgan Stanley, and PNC Capital Markets are acting as lead underwriters for this offering, which enhances market confidence in the bonds and may improve their market acceptance.
- Compliance and Transparency: The offering is made under an automatic shelf registration statement, ensuring compliance and providing transparent disclosures, which enhances investor confidence in the company's future prospects.
See More
Royal Caribbean Announces $1.25 Billion Bond Offering
- Bond Offering Size: Royal Caribbean announced a public offering of $1.25 billion in 4.750% and 5.250% senior unsecured notes maturing in 2033 and 2038, reflecting the company's proactive approach to future financing.
- Clear Use of Proceeds: The net proceeds from this bond issuance will be used to refinance senior notes maturing in 2026 and repay existing debt, aiming to optimize the capital structure and reduce financial costs.
- Strong Underwriter Lineup: J.P. Morgan, Morgan Stanley, and PNC Capital Markets are acting as lead underwriters for this bond offering, enhancing market confidence in the transaction.
- Optimistic Future Outlook: Royal Caribbean expects to achieve double-digit revenue growth and EPS between $17.70 and $18.10 in 2026, indicating the company's strategic commitment to expanding its river cruise business.
See More
Royal Caribbean Group Declares Quarterly Dividend
- Quarterly Dividend Increase: The Board of Directors of Royal Caribbean Group declared a quarterly dividend of $1.50 per common share, payable on April 3, 2026, reflecting the company's strong business performance and momentum across its global vacation portfolio.
- Commitment to Shareholder Returns: CEO Jason Liberty emphasized that this dividend increase underscores the company's commitment to delivering meaningful returns to shareholders while continuing to invest in innovations and experiences that enhance customer satisfaction and market competitiveness.
- Business Expansion Plans: Royal Caribbean Group aims to expand its private destinations from three to eight by 2028, significantly enhancing its influence in the global vacation market, and plans to enter river cruising in 2027 with Celebrity River Cruises.
- Industry Recognition: The company was named to Fortune's 2026 World's Most Admired Companies list and Forbes' 2026 Best American Companies list, highlighting its leadership position in the industry and commitment to sustainable vacation experiences.
See More
Royal Caribbean Group Declares Quarterly Dividend
- Quarterly Dividend Increase: The Board of Directors of Royal Caribbean Group has declared a quarterly dividend of $1.50 per common share, payable on April 3, 2026, reflecting the ongoing strength of the company's business and positive momentum across its global vacation portfolio.
- Commitment to Shareholder Returns: CEO Jason Liberty emphasized that this dividend increase underscores the company's commitment to delivering meaningful returns to shareholders while continuing to invest in innovations and experiences that enhance brand value and market competitiveness.
- Business Expansion Plans: Royal Caribbean Group aims to expand its portfolio of private destinations from three to eight by 2028 through its Perfect Day and Royal Beach Club collections, which will further enhance customer experiences and drive revenue growth.
- Industry Recognition: The company has been named to Fortune's 2026 World's Most Admired Companies list and Forbes' 2026 Best American Companies list, highlighting its leadership position and commitment to social responsibility in the global vacation industry.
See More
Royal Caribbean Announces Public Offering of Senior Unsecured Notes
- Public Offering Announcement: Royal Caribbean has commenced a public offering of senior unsecured notes, intending to use the proceeds to refinance senior notes maturing in 2026 and repay existing debt, thereby optimizing its capital structure and reducing financial costs.
- Underwriter Lineup: J.P. Morgan, Morgan Stanley, and PNC Capital Markets are acting as lead underwriters for the offering, reflecting market confidence in the company's financing needs while providing robust market support for the issuance.
- Registration Statement Validity: The notes offering is being conducted under an automatic shelf registration statement filed on February 29, 2024, which became effective upon filing, ensuring compliance and transparency in the issuance process, thus attracting more investor participation.
- Forward-Looking Statement Risks: The company highlighted that its future performance may be influenced by various risk factors, including economic conditions, fluctuations in operating costs, and market competition, which could affect investor expectations regarding the company's future performance.
See More
Royal Caribbean Announces $1.25 Billion Bond Offering
- Bond Offering Size: Royal Caribbean has announced a public offering of $1.25 billion in senior unsecured notes with interest rates of 4.750% and 5.250%, maturing in 2033 and 2038 respectively, reflecting the company's strong capital market presence and proactive approach to future funding needs.
- Clear Use of Proceeds: The net proceeds from this bond issuance will be utilized to refinance senior notes maturing in 2026 and to repay existing debt, indicating the company's strategic intent to optimize its capital structure and reduce financial costs.
- Strong Underwriter Lineup: With J.P. Morgan, Morgan Stanley, and PNC Capital Markets acting as lead underwriters, the offering enhances market confidence in the bonds while providing the company with expert financing support.
- Compliance and Transparency: The offering is made under an automatic shelf registration statement, ensuring compliance and transparency, which further boosts investor trust in the company's financial health.
See More
Royal Caribbean Announces $1.25 Billion Bond Offering
- Bond Offering Size: Royal Caribbean has announced a public offering of $1.25 billion in senior unsecured notes, including 4.750% notes due in 2033 and 5.250% notes due in 2038, reflecting the company's strong capital market financing capabilities.
- Clear Use of Proceeds: The net proceeds from this bond offering will be used to refinance senior debt maturing in 2026 and repay existing indebtedness, including potential term loans, thereby optimizing the company's capital structure and financial flexibility.
- Strong Underwriter Lineup: J.P. Morgan Securities, Morgan Stanley, and PNC Capital Markets are acting as lead underwriters for this offering, which enhances market confidence in the bonds and may improve their market acceptance.
- Compliance and Transparency: The offering is made under an automatic shelf registration statement, ensuring compliance and providing transparent disclosures, which enhances investor confidence in the company's future prospects.
See More
Royal Caribbean Announces $1.25 Billion Bond Offering
- Bond Offering Size: Royal Caribbean announced a public offering of $1.25 billion in 4.750% and 5.250% senior unsecured notes maturing in 2033 and 2038, reflecting the company's proactive approach to future financing.
- Clear Use of Proceeds: The net proceeds from this bond issuance will be used to refinance senior notes maturing in 2026 and repay existing debt, aiming to optimize the capital structure and reduce financial costs.
- Strong Underwriter Lineup: J.P. Morgan, Morgan Stanley, and PNC Capital Markets are acting as lead underwriters for this bond offering, enhancing market confidence in the transaction.
- Optimistic Future Outlook: Royal Caribbean expects to achieve double-digit revenue growth and EPS between $17.70 and $18.10 in 2026, indicating the company's strategic commitment to expanding its river cruise business.
See More
Royal Caribbean Group Declares Quarterly Dividend
- Quarterly Dividend Increase: The Board of Directors of Royal Caribbean Group declared a quarterly dividend of $1.50 per common share, payable on April 3, 2026, reflecting the company's strong business performance and momentum across its global vacation portfolio.
- Commitment to Shareholder Returns: CEO Jason Liberty emphasized that this dividend increase underscores the company's commitment to delivering meaningful returns to shareholders while continuing to invest in innovations and experiences that enhance customer satisfaction and market competitiveness.
- Business Expansion Plans: Royal Caribbean Group aims to expand its private destinations from three to eight by 2028, significantly enhancing its influence in the global vacation market, and plans to enter river cruising in 2027 with Celebrity River Cruises.
- Industry Recognition: The company was named to Fortune's 2026 World's Most Admired Companies list and Forbes' 2026 Best American Companies list, highlighting its leadership position in the industry and commitment to sustainable vacation experiences.
See More
Royal Caribbean Group Declares Quarterly Dividend
- Quarterly Dividend Increase: The Board of Directors of Royal Caribbean Group has declared a quarterly dividend of $1.50 per common share, payable on April 3, 2026, reflecting the ongoing strength of the company's business and positive momentum across its global vacation portfolio.
- Commitment to Shareholder Returns: CEO Jason Liberty emphasized that this dividend increase underscores the company's commitment to delivering meaningful returns to shareholders while continuing to invest in innovations and experiences that enhance brand value and market competitiveness.
- Business Expansion Plans: Royal Caribbean Group aims to expand its portfolio of private destinations from three to eight by 2028 through its Perfect Day and Royal Beach Club collections, which will further enhance customer experiences and drive revenue growth.
- Industry Recognition: The company has been named to Fortune's 2026 World's Most Admired Companies list and Forbes' 2026 Best American Companies list, highlighting its leadership position and commitment to social responsibility in the global vacation industry.
See More
