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Norwegian Cruise Line (NCLH) Dips More Than Broader Market: What You Should Know

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Norwegian Cruise Line (NCLH - Free Report) ended the recent trading session at $20.54, demonstrating a -0.77% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.31%. Meanwhile, the Dow experienced a drop of 0.41%, and the technology-dominated Nasdaq saw a decrease of 0.27%.

Prior to today's trading, shares of the cruise operator had gained 28.01% over the past month. This has outpaced the Consumer Discretionary sector's gain of 0.85% and the S&P 500's gain of 3.05% in that time.

The upcoming earnings release of Norwegian Cruise Line will be of great interest to investors. The company is expected to report EPS of $0.11, up 136.67% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.22 billion, indicating a 22.09% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.25 per share and a revenue of $9.37 billion, representing changes of +78.57% and +9.6%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Norwegian Cruise Line. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has moved 14.23% higher. Norwegian Cruise Line currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Norwegian Cruise Line is currently trading at a Forward P/E ratio of 16.52. This indicates a discount in contrast to its industry's Forward P/E of 16.68.

It's also important to note that NCLH currently trades at a PEG ratio of 0.34. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Leisure and Recreation Services industry had an average PEG ratio of 1.24 as trading concluded yesterday.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 39% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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