SHARES OF ROYAL CARIBBEAN CRUISES POTENTIALLY UNDERVALUED IN TERMS OF FORWARD EARNINGS YIELD (RCL, CCL)
Mar 07, 2011 (SmarTrend(R) News Watch via COMTEX) -- Below are the highest five companies in the Hotels, Resorts & Cruise Lines industry based on estimated Forward Earnings Yields. Using projected earnings for the current fiscal year, the forward earnings yield is useful to compare a stock's return vs. owning a similar stock or other yield assets (e.g. bonds). Generally, the higher the earnings yield, the more undervalued the stock.
Royal Caribbean Cruises (NYSE:RCL) has the highest Forward Earnings Yield of 8.0%; Carnival (NYSE:CCL) is next with a Forward Earnings Yield of 7.4%; and Wyndham Worldwide (NYSE:WYN) has the next highest with a Forward Earnings Yield of 6.7%.
Intercontinental Hotels Group (NYSE:IHG) follows with a Forward Earnings Yield of 5.0% and Ambassadors (NASDAQ:EPAX) rounds out the group with a Forward Earnings Yield of 4.7%.
SmarTrend currently has shares of Intercontinental Hotels Group in an Uptrend and issued the Uptrend alert on December 02, 2010 at $18.80. The stock has risen 15.7% since the Uptrend alert was issued.