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Are Investors Undervaluing Norwegian Cruise Line (NCLH) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 10.22, while its industry has an average P/E of 15.96. 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 12.37.
We also note that NCLH holds a PEG ratio of 0.20. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NCLH's PEG compares to its industry's average PEG of 0.52. Over the last 12 months, NCLH's PEG has been as high as 0.33 and as low as 0.18, with a median of 0.22.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NCLH has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.2.
Finally, investors will want to recognize that NCLH has a P/CF ratio of 6.77. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NCLH's current P/CF looks attractive when compared to its industry's average P/CF of 12. Within the past 12 months, NCLH's P/CF has been as high as 16.32 and as low as -1,132.79, with a median of 6.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Norwegian Cruise Line is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NCLH feels like a great value stock at the moment.
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Are Investors Undervaluing Norwegian Cruise Line (NCLH) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 10.22, while its industry has an average P/E of 15.96. 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 12.37.
We also note that NCLH holds a PEG ratio of 0.20. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NCLH's PEG compares to its industry's average PEG of 0.52. Over the last 12 months, NCLH's PEG has been as high as 0.33 and as low as 0.18, with a median of 0.22.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NCLH has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.2.
Finally, investors will want to recognize that NCLH has a P/CF ratio of 6.77. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NCLH's current P/CF looks attractive when compared to its industry's average P/CF of 12. Within the past 12 months, NCLH's P/CF has been as high as 16.32 and as low as -1,132.79, with a median of 6.93.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Norwegian Cruise Line is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NCLH feels like a great value stock at the moment.