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Norwegian Cruise Line (NCLH) Rises But Trails Market: What Investors Should Know

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Norwegian Cruise Line (NCLH - Free Report) closed the most recent trading day at $13.95, moving +0.22% from the previous trading session. This move lagged the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.93%.

The cruise operator's stock has dropped by 8.3% in the past month, falling short of the Consumer Discretionary sector's loss of 1.02% and the S&P 500's loss of 2.29%.

The upcoming earnings release of Norwegian Cruise Line will be of great interest to investors. The company's earnings report is expected on November 1, 2023. In that report, analysts expect Norwegian Cruise Line to post earnings of $0.69 per share. This would mark year-over-year growth of 207.81%. In the meantime, our current consensus estimate forecasts the revenue to be $2.55 billion, indicating a 57.95% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.83 per share and a revenue of $8.68 billion, signifying shifts of +117.89% and +79.28%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Norwegian Cruise Line. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Norwegian Cruise Line is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Norwegian Cruise Line currently has a Forward P/E ratio of 16.86. For comparison, its industry has an average Forward P/E of 16.65, which means Norwegian Cruise Line is trading at a premium to the group.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 41% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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