Royal Caribbean Stock Remains 36% Below Pre-Covid Levels. Should You Buy?

Royal Caribbean Stock Remains 36% Below Pre-Covid Levels. Should You Buy?

Royal Caribbean stock (NYSE: RCL), the second-largest cruise line operator, has seen its stock trail the market this year rising by just about 7% year-to-date, compared to the S&P 500 which remains up by around 27%. While the company resumed its cruises in June after over a year of essentially being shut down, the recovery has been limited somewhat by a surge in the U. S. Covid cases through the summer and recent concerns surrounding the apparently more infectious new omicron strain of the coronavirus. That said, there have been some positive developments for the stock, as well. Firstly, demand for the next year appears to be solid, with the company noting that bookings for next summer were trending at historically strong levels, and the company noted that it could turn profitable again by the end of next year. Royal Caribbean International also expects all 26 of its cruise ships to be back in service by spring 2022. Moreover, on Wednesday, Pfizer indicated that the third dose of its Covid-19 vaccine would be effective at neutralizing the omicron variant and this should also prove positive for the cruising industry in general. Now, RCL's stock price remains down by about 36%