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Norwegian Cruise Line (NCLH) Stock Sinks As Market Gains: What You Should Know

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Norwegian Cruise Line (NCLH - Free Report) closed at $10.85 in the latest trading session, marking a -1.36% move from the prior day. This move lagged the S&P 500's daily gain of 2.29%. Elsewhere, the Dow gained 1.99%, while the tech-heavy Nasdaq added 2.81%.

Coming into today, shares of the cruise operator had lost 20% in the past month. In that same time, the Consumer Discretionary sector gained 18.15%, while the S&P 500 gained 19.13%.

NCLH will be looking to display strength as it nears its next earnings release. In that report, analysts expect NCLH to post earnings of -$0.19 per share. This would mark a year-over-year decline of 122.89%. Our most recent consensus estimate is calling for quarterly revenue of $1.39 billion, down 1.2% from the year-ago period.

NCLH's full-year Zacks Consensus Estimates are calling for earnings of -$0.29 per share and revenue of $5.47 billion. These results would represent year-over-year changes of -105.7% and -15.35%, respectively.

Any recent changes to analyst estimates for NCLH should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 124.45% lower. NCLH is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, NCLH is holding a Forward P/E ratio of 14.89. For comparison, its industry has an average Forward P/E of 39.72, which means NCLH is trading at a discount to the group.

We can also see that NCLH currently has a PEG ratio of 2.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 3.32 based on yesterday's closing prices.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NCLH in the coming trading sessions, be sure to utilize Zacks.com.


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