RCL

Stock Performance: Royal Caribbean's stock closed at $259.27, down 2.45%, underperforming the S&P 500, which gained 0.11%. However, the stock has risen 3.56% over the past month, outperforming both the Consumer Discretionary sector and the S&P 500.

Earnings Expectations: The upcoming earnings report is expected to show an EPS of $2.8, a 71.78% increase year-over-year, with revenue projected at $4.27 billion, reflecting a 13.43% rise compared to the previous year.

Analyst Estimates and Zacks Rank: Recent changes in analyst estimates are crucial for investors, with Royal Caribbean currently holding a Zacks Rank of #3 (Hold). The Zacks Rank system has a strong track record, with #1 ranked stocks averaging a 25% annual return since 1988.

Valuation Metrics: Royal Caribbean's Forward P/E ratio is 17, slightly below the industry average of 17.45, and its PEG ratio is 0.8, indicating it is trading at a discount compared to the Leisure and Recreation Services industry, which has an average PEG ratio of 1.21.

Contrarian Investment Strategy: Royal Caribbean Cruises Ltd (RCL) is rated highly by Validea's Contrarian Investor model, which identifies unpopular mid- and large-cap stocks with improving fundamentals, achieving a score of 57%.

Stock Valuation: The stock's rating indicates moderate interest based on its fundamentals and valuation, with a score of 80% or above typically signaling stronger interest.

David Dreman's Background: David Dreman, the strategy's originator, is noted for his successful Kemper-Dreman High Return Fund, which was a top performer in its category during the late 1980s to late 1990s.

Validea's Research Service: Validea provides investment research based on the strategies of renowned investors, offering stock analysis and model portfolios aimed at long-term market outperformance.

December Market Trends: Historically, December is a strong month for the S&P 500, averaging a 1.4% gain since 1950, with a 73% chance of finishing higher. Positive Decembers see an average gain of 2.9%, while negative ones average a loss of 2.6%.

Top Performing Stocks: Several S&P 500 stocks exhibit strong seasonal performance in December, particularly cruise operators like Carnival Corp. and Royal Caribbean, which have average gains of 5.4% and 4.4%, respectively, over the past 30 years.

Tech and Pharma Performance: Tech companies such as Western Digital and Seagate also show significant December gains, averaging 4.66% and 4.2%. In the pharmaceutical sector, Eli Lilly averages a 3.1% gain during the month.

Financial Sector Gains: Major financial institutions like Goldman Sachs and JPMorgan Chase have demonstrated reliable December performance, with average gains of 3% and 2.5%, respectively, since 1999.