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

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In the latest trading session, Norwegian Cruise Line (NCLH - Free Report) closed at $16.42, marking a -0.06% move from the previous day. This change lagged the S&P 500's daily gain of 0.5%. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq gained 0.95%.

Heading into today, shares of the cruise operator had lost 5.52% over the past month, lagging the Consumer Discretionary sector's gain of 1.22% and the S&P 500's gain of 1.89% in that time.

Investors will be hoping for strength from NCLH as it approaches its next earnings release. In that report, analysts expect NCLH to post earnings of -$2.20 per share. This would mark a year-over-year decline of 269.23%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.38 million, down 99.74% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$6.84 per share and revenue of $1.81 billion, which would represent changes of -234.38% and -71.94%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for NCLH. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 9.23% lower within the past month. NCLH is currently a Zacks Rank #4 (Sell).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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