Aggressive Stock Portfolio: 12 Stocks Picked by Hedge Funds

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

3-Year Average Revenue Growth: 120.77%

Number of Hedge Fund Holders: 58

Royal Caribbean Cruises Ltd. (NYSE:RCL) is a globally renowned company operating a portfolio in the cruise industry. It works through brands like Royal Caribbean International, Celebrity Cruises, and Silversea, providing diversified trips and exclusive destinations to a wide range of customers. As vacations are getting more popular, the company is building its business, as it just announced Celebrity River Cruises, planned for 2027.

Royal Caribbean Cruises Ltd. (NYSE:RCL) posted impressive finances for 2024 as net revenue hit $16.5 billion, up 18.60% from last year. Furthermore, net income jumped 69.53% to $2.9 billion, with earnings per share at $10.94, whereas adjusted EPS reached $11.80, a 74% year-over-year increase. This growth was driven by higher pricing on last-minute bookings and strong onboard spending. However, as a result of higher share prices, there was a rise in stock-based compensation costs, which partially offset gains. For Q4 2024 revenue reached $3.8 billion, 24% higher than $3.1 billion in Q4 2023.

Royal Caribbean Cruises Ltd. (NYSE:RCL) is continuously getting record bookings, with increasing demand for its vacation experiences. Royal just had its best five-week booking period ever, with load factors and prices higher than in prior years. The newly launched Celebrity River Cruises is expected to have a greater share of the $2 trillion global vacation market. Meanwhile, management stays focused on improving yields, adding innovative ships, and boosting margins through careful cost control.

In the future, Royal Caribbean Cruises Ltd. (NYSE:RCL) predicts adjusted earnings between $14.35 and $14.65 per share, a 23% annual increase. Strategic moves like Celebrity River Cruises bolstering its long-term earning capacity. A steady double-digit revenue growth, broader margins, and strong earnings trends position Royal Caribbean as a top stock in our stock portfolio.