Long Position on RCL @ $80.50 on 6/1/2023 (Momentum)

Royal Caribbean Cruises Ltd. (RCL) operates as a cruise company worldwide. 

The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Silversea Cruises brands, which comprise a range of itineraries. As of February 13, 2023, it operated 64 ships. 

Shares have formed a bullish "cup and handle" and are expected to move higher out of this formation. 

On May 4th, RCL reported a 1st Quarter March 2023 loss of $0.23 per share on revenue of $2.9 billion. The consensus estimate was a loss of $0.71 per share on revenue of $2.8 billion. Revenue grew 172.4% on a year-over-year basis.

Guided Higher:  The company said it expects second quarter earnings of $1.50 to $1.60 per share and 2023 earnings of $4.40 to $4.80 per share. The company's previous guidance was 2023 earnings of $3.00 to $3.60 per share. The current consensus estimate is earnings of $1.00 per share for the quarter ending June 30, 2023 and earnings of $3.30 per share for the year ending December 31, 2023.

Entry Point: $80.50

Stop Loss: $76.50

Trading Range: $31.09 to $81.16

Target Price: $89.00

Position closed on 6/6/2023 at price of $89.50 with a 11.18% gain in 5 days.

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