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Is Norwegian Cruise Line (NCLH) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.34 right now. For comparison, its industry sports an average P/E of 15.09. Over the past 52 weeks, NCLH's Forward P/E has been as high as 26.42 and as low as 8.48, with a median of 12.64.
NCLH is also sporting a PEG ratio of 0.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NCLH's industry has an average PEG of 0.49 right now. NCLH's PEG has been as high as 0.33 and as low as 0.18, with a median of 0.22, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NCLH has a P/S ratio of 0.75. This compares to its industry's average P/S of 0.9.
These are only a few of the key metrics included in Norwegian Cruise Line's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NCLH looks like an impressive value stock at the moment.
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Is Norwegian Cruise Line (NCLH) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.34 right now. For comparison, its industry sports an average P/E of 15.09. Over the past 52 weeks, NCLH's Forward P/E has been as high as 26.42 and as low as 8.48, with a median of 12.64.
NCLH is also sporting a PEG ratio of 0.18. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NCLH's industry has an average PEG of 0.49 right now. NCLH's PEG has been as high as 0.33 and as low as 0.18, with a median of 0.22, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NCLH has a P/S ratio of 0.75. This compares to its industry's average P/S of 0.9.
These are only a few of the key metrics included in Norwegian Cruise Line's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NCLH looks like an impressive value stock at the moment.