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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.
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 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 has a Forward P/E ratio of 11.14. This compares to its industry's average Forward P/E of 17.88. 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 11.66.
Investors will also notice that NCLH has a PEG ratio of 0.22. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NCLH's PEG compares to its industry's average PEG of 0.58. Within the past year, 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 use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.97. This compares to its industry's average P/S of 1.07.
Finally, investors will want to recognize that NCLH has a P/CF ratio of 7.67. 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. NCLH's current P/CF looks attractive when compared to its industry's average P/CF of 12.97. Over the past year, NCLH's P/CF has been as high as 16.32 and as low as 5.32, with a median of 7.09.
Another great Leisure and Recreation Services stock you could consider is RCI Hospitality (RICK - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of RCI Hospitality are currently trading at a forward earnings multiple of 10.20 and a PEG ratio of 0.92 compared to its industry's P/E and PEG ratios of 17.88 and 0.58, respectively.
Over the last 12 months, RICK's P/E has been as high as 61.17, as low as 8.63, with a median of 10.45, and its PEG ratio has been as high as 1.11, as low as 0.72, with a median of 0.87.
RCI Hospitality sports a P/B ratio of 1.39 as well; this compares to its industry's price-to-book ratio of 4.13. In the past 52 weeks, RICK's P/B has been as high as 2.27, as low as 1.29, with a median of 1.75.
These are just a handful of the figures considered in Norwegian Cruise Line and RCI Hospitality's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NCLH and RICK is an impressive value stock right now.
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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.
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 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 has a Forward P/E ratio of 11.14. This compares to its industry's average Forward P/E of 17.88. 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 11.66.
Investors will also notice that NCLH has a PEG ratio of 0.22. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NCLH's PEG compares to its industry's average PEG of 0.58. Within the past year, 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 use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.97. This compares to its industry's average P/S of 1.07.
Finally, investors will want to recognize that NCLH has a P/CF ratio of 7.67. 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. NCLH's current P/CF looks attractive when compared to its industry's average P/CF of 12.97. Over the past year, NCLH's P/CF has been as high as 16.32 and as low as 5.32, with a median of 7.09.
Another great Leisure and Recreation Services stock you could consider is RCI Hospitality (RICK - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Shares of RCI Hospitality are currently trading at a forward earnings multiple of 10.20 and a PEG ratio of 0.92 compared to its industry's P/E and PEG ratios of 17.88 and 0.58, respectively.
Over the last 12 months, RICK's P/E has been as high as 61.17, as low as 8.63, with a median of 10.45, and its PEG ratio has been as high as 1.11, as low as 0.72, with a median of 0.87.
RCI Hospitality sports a P/B ratio of 1.39 as well; this compares to its industry's price-to-book ratio of 4.13. In the past 52 weeks, RICK's P/B has been as high as 2.27, as low as 1.29, with a median of 1.75.
These are just a handful of the figures considered in Norwegian Cruise Line and RCI Hospitality's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NCLH and RICK is an impressive value stock right now.