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Norwegian Cruise Line (NCLH) Stock Drops Despite Market Gains: Important Facts to Note

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In the latest trading session, Norwegian Cruise Line (NCLH - Free Report) closed at $16.10, marking a -0.49% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.13%. Meanwhile, the Dow experienced a rise of 0.13%, and the technology-dominated Nasdaq saw a decrease of 0.32%.

Shares of the cruise operator have depreciated by 7.06% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 2.42% and the S&P 500's gain of 2.99%.

The upcoming earnings release of Norwegian Cruise Line will be of great interest to investors. The company's earnings report is expected on February 27, 2024. It is anticipated that the company will report an EPS of -$0.13, marking an 87.5% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.99 billion, indicating a 31.14% growth compared to the corresponding quarter of the prior year.

Investors should also pay attention to any latest changes in analyst estimates 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 1.7% lower within the past month. Right now, Norwegian Cruise Line possesses a Zacks Rank of #4 (Sell).

Digging into valuation, Norwegian Cruise Line currently has a Forward P/E ratio of 14.03. This signifies a discount in comparison to the average Forward P/E of 15.86 for its industry.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 79, placing it within the top 32% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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