We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Norwegian Cruise Line (NCLH) Stock?
Read MoreHide Full Article
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 11.60. This compares to its industry's average Forward P/E of 16.93. Over the past year, NCLH's Forward P/E has been as high as 26.42 and as low as 8.48, with a median of 13.20.
We also note that NCLH holds a PEG ratio of 0.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NCLH's PEG compares to its industry's average PEG of 0.55. NCLH's PEG has been as high as 0.33 and as low as 0.20, with a median of 0.23, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NCLH has a P/S ratio of 0.9. This compares to its industry's average P/S of 0.92.
Finally, we should also recognize that NCLH has a P/CF ratio of 6.38. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.07. Over the past year, NCLH's P/CF has been as high as 16.32 and as low as -1,471.18, with a median of 6.59.
Investors could also keep in mind Travel Leisure Co. (TNL - Free Report) , an Leisure and Recreation Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Travel Leisure Co. is currently trading with a Forward P/E ratio of 7.36 while its PEG ratio sits at 2.28. Both of the company's metrics compare favorably to its industry's average P/E of 16.93 and average PEG ratio of 0.55.
Over the last 12 months, TNL's P/E has been as high as 8.80, as low as 5.57, with a median of 7.24, and its PEG ratio has been as high as 2.47, as low as 0.32, with a median of 0.90.
Travel Leisure Co. also has a P/B ratio of -3.34 compared to its industry's price-to-book ratio of 3.56. Over the past year, its P/B ratio has been as high as -2.36, as low as -3.87, with a median of -3.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Norwegian Cruise Line and Travel Leisure Co. are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NCLH and TNL feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Should Value Investors Buy Norwegian Cruise Line (NCLH) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 11.60. This compares to its industry's average Forward P/E of 16.93. Over the past year, NCLH's Forward P/E has been as high as 26.42 and as low as 8.48, with a median of 13.20.
We also note that NCLH holds a PEG ratio of 0.22. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NCLH's PEG compares to its industry's average PEG of 0.55. NCLH's PEG has been as high as 0.33 and as low as 0.20, with a median of 0.23, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NCLH has a P/S ratio of 0.9. This compares to its industry's average P/S of 0.92.
Finally, we should also recognize that NCLH has a P/CF ratio of 6.38. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.07. Over the past year, NCLH's P/CF has been as high as 16.32 and as low as -1,471.18, with a median of 6.59.
Investors could also keep in mind Travel Leisure Co. (TNL - Free Report) , an Leisure and Recreation Services stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Travel Leisure Co. is currently trading with a Forward P/E ratio of 7.36 while its PEG ratio sits at 2.28. Both of the company's metrics compare favorably to its industry's average P/E of 16.93 and average PEG ratio of 0.55.
Over the last 12 months, TNL's P/E has been as high as 8.80, as low as 5.57, with a median of 7.24, and its PEG ratio has been as high as 2.47, as low as 0.32, with a median of 0.90.
Travel Leisure Co. also has a P/B ratio of -3.34 compared to its industry's price-to-book ratio of 3.56. Over the past year, its P/B ratio has been as high as -2.36, as low as -3.87, with a median of -3.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Norwegian Cruise Line and Travel Leisure Co. are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NCLH and TNL feels like a great value stock at the moment.