Market Overview

Here's How Much Investing $1,000 In Royal Caribbean Stock Back In 2010 Would Be Worth Today

Here's How Much Investing $1,000 In Royal Caribbean Stock Back In 2010 Would Be Worth Today

Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500's (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.

Royal Caribbean’s Difficult Decade

One of the market laggards of the decade was cruise line giant Royal Caribbean Cruises Ltd (NYSE: RCL).

Royal Caribbean is the second-largest company in the cruise industry, and for most of the past decade it benefited from an aging baby boomer generation. The company operates a fleet of 60 ships. Its typical routes include 535 different destinations.

Unfortunately, after a solid decade of returns, Royal Caribbean has experienced a near worst-case scenario to kick off the 2020s. The global COVID-19 outbreak has shut down essentially all of Royal Caribbean’s operations. The company has said it expects to resume operations on Aug. 1, but investors have no idea how much initial demand there will be for vacationers to be crowded into a cruise ship for days at a time.

Back In 2010

Royal Caribbean shares started the 2010s trading at around $26. Royal Caribbean made it to $42.18 in early 2011 before selling off down to $15.84 by the end of the year. That level would ultimately mark its low point of the decade.

The stock rallied hard from that point forward, breaking out to new highs above $50 by mid-2014 and making it all the way to $133.99 in early 2020.

The recent coronavirus fears sent Royal Caribbean shares crashing down near their 2010s low in March. In fact the stock dropped as low as $19.25 before bouncing back on optimism about a potential COVID-19 vaccine and aggressive economic stimulus from the Federal Reserve.

2020 And Beyond

After an impressive decade in the 2010s, Royal Caribbean stares hit an iceberg in 2020 thanks to the coronavirus.

But even after the massive 2020 sell-off, $1,000 worth of Royal Caribbean stock in 2010 would be worth $2,052 today, assuming reinvested dividends.

Looking ahead, analysts expect limited additional upside for Royal Caribbean in 2020. The average price target among the 13 analysts covering the stock is $49, suggesting 2.4% upside from current levels.

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