Royal Caribbean is considerably exposed to economic cycles.
I identify four key issues that affect RCL's results. These likely worsen substantially when the economy enters a recession.
My valuation of the company suggests that there's substantial upside at current prices. However, I think that's only half the story.
I believe the market assigns RCL a higher-than-average discount rate because its performance is tightly linked to macroeconomic factors.
Royal Caribbean is an excellent long-term buy during a recession. It's probably better to wait until it's on sale once again.
Royal Caribbean Cruises (NYSE:RCL) is an excellent business with predictable revenues and shareholder-friendly management. Its market is somewhat stable, and it should work well over the long-term. Still, macroeconomic risks and intense need