10 Most Undervalued Growth Stocks to Buy Now

6. Royal Caribbean Cruises Ltd. (NYSE:RCL)

Forward P/E ratio: 10.98

Revenue CAGR last 5 years: 88.47%

Number of Hedge Fund Holders: 58

​Royal Caribbean Group (NYSE:RCL) is one of the largest global cruise companies, operating more than 67 cruise ships across five brands, including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises, serving tourists across the entire world. The company’s strength lies in offering diverse and innovative cruise experiences and onboard amenities, which attract new travelers each year and continuously popularize the cruising holidays format. RCL ranked eighth on our recent list of 10 Best Economic Recovery Stocks to Buy.

Royal Caribbean Group (NYSE:RCL) delivered exceptional Q4 and full year 2024 results, with a record 8.6 million vacations delivered, 11.6% net yield growth, and over $5 billion in operating cash flow. The company achieved its trifecta financial goals 18 months ahead of schedule, returned to investment-grade metrics, and met its double-digit carbon intensity reduction target a year early. The latest Q4 specifically saw revenue yields up 7.3%, earnings per share exceeding guidance by $0.20, and a strong booking position for 2025 in terms of both pricing and volume. Despite strong growth momentum, RCL trades at a forward P/E ratio of only 10.98 and is therefore included among the most undervalued stocks on our list.

Looking ahead to 2025, Royal Caribbean Group (NYSE:RCL) announced significant strategic initiatives, including the launch of Celebrity River Cruises with an initial order of 10 ships starting in 2027, and the ordering of a sixth Edge-class ship for Celebrity Cruises. The company expects 23% earnings growth in 2025, with capacity growing by 5% through new ship introductions and yields projected to grow 2.5% to 4.5%. Booking momentum has been particularly strong as well, with the company reporting its best five booking weeks in history during the latest earnings call.