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Here's Why Norwegian Cruise Line (NCLH) Fell More Than Broader Market

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Norwegian Cruise Line (NCLH - Free Report) closed the most recent trading day at $13.72, moving -1.65% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 1.43%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 2.43%.

Heading into today, shares of the cruise operator had lost 9.36% over the past month, lagging the Consumer Discretionary sector's gain of 0.12% and the S&P 500's loss of 1.55% in that time.

Market participants will be closely following the financial results of Norwegian Cruise Line in its upcoming release. The company plans to announce its earnings on November 1, 2023. On that day, Norwegian Cruise Line is projected to report earnings of $0.69 per share, which would represent year-over-year growth of 207.81%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.55 billion, indicating a 57.95% increase compared to the same quarter of the previous year.

NCLH's full-year Zacks Consensus Estimates are calling for earnings of $0.81 per share and revenue of $8.68 billion. These results would represent year-over-year changes of +117.46% and +79.28%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Norwegian Cruise Line. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Norwegian Cruise Line is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Norwegian Cruise Line's current valuation metrics, including its Forward P/E ratio of 17.31. This valuation marks a premium compared to its industry's average Forward P/E of 16.94.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 145, this industry ranks in the bottom 43% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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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