Hello TipRanks Members,
(After today’s market commentary I am unveiling a new feature: Stock of the Week. This is where I highlight an attractive stock using the resources found on TipRanks.com).
My biggest complaint with the financial media was on full display this past week. I am referring to taking a minor story like Turkey and blowing it totally out of proportion.
Do you really think that a country that accounts for only 1% of the world economy is going to create systemic risk? Or a reason for any kind of sustained sell off?
Of course not!
Investors often get skittish when the market is on the verge of making new all-time highs. You could almost say that they were begging for any reason to take some money off the table. The Turkey story was just a convenient excuse to do just that. However, you can also see how quickly things bounced back with gusto on Thursday.
Yes, a scary future headline coming out of Turkey may once again take some starch out of stock prices. But just like this past week, the effects will pass quickly.
Plain and simple, all the catalysts are in place for stocks to make new highs. I am referring to strong economic data and ample earnings growth. The main thing in the way right now is the trade talks with China. The sooner we get to resolution on that matter, the sooner we make it to new highs. And when we do, it is 3000 or bust on the S&P in 2018.
Stock of the Week = Royal Caribbean (RCL)
History shows great strength in consumer discretionary stocks during the latter stages of an economic expansion. That is because when incomes are on the rise, and no fear of a recession is in sight, then folks are much more willing to enjoy leisure activities like vacation cruises.
Because I am a value guy at heart, that is the place to start with the merits of this investment story. The average target price of analysts stands at $146.40. More than 25% above current levels.
The fun doesn’t stop there. RCL is coming off a strong 12.9% earnings beat with earnings estimates for the year on the rise. In fact, they are slated for 20% earnings growth, which is no small feat for a company this large ($24 billion market cap).
Beyond the impressive earnings growth and attractive target price, there are two other key positives worth pointing point:
Consensus of the Best Analysts = Strong Buy
Blogger Sentiment = 100% Positive
Shares have been as high $135 in the past year. So we should all be happy to board this ship closer to its current port under $120. Especially with so many top-rated investors pounding the table on the upside potential
Wishing you a world of investment success!
Steve Reitmeister
Editor in Chief
www.TipRanks.com
Disclaimer: In general, I own the stocks that I highlight in commentary. When you think about it…why would you ever take advice from an investment professional who wasn’t willing to put his money where his mouth is?
