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Norwegian Cruise Line (NCLH) Stock Sinks As Market Gains: Here's Why

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Norwegian Cruise Line (NCLH - Free Report) closed the latest trading day at $19.76, indicating a -0.45% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.03% for the day. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.2%.

Shares of the cruise operator have appreciated by 22.99% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.35% and the S&P 500's gain of 1.54%.

The investment community will be closely monitoring the performance of Norwegian Cruise Line in its forthcoming earnings report. The company is expected to report EPS of $0.94, up 23.68% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.75 billion, showing an 8.29% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.58 per share and revenue of $9.38 billion. These totals would mark changes of +125.71% and +9.77%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Norwegian Cruise Line. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Norwegian Cruise Line currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Norwegian Cruise Line is holding a Forward P/E ratio of 12.59. This valuation marks a discount compared to its industry's average Forward P/E of 18.35.

Investors should also note that NCLH has a PEG ratio of 0.25 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NCLH's industry had an average PEG ratio of 1.08 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 38% echelons 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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