The most recent trading session ended with Norwegian Cruise Line (NCLH) standing at $20.09, reflecting a -1.47% shift from the previouse trading day’s closing. The stock fell short of the S&P 500, which registered a loss of 0.96% for the day. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 1.18%.
The the stock of cruise operator has risen by 20.3% in the past month, leading the Consumer Discretionary sector’s gain of 6.56% and the S&P 500’s gain of 4.3%.
Investors will be eagerly watching for the performance of Norwegian Cruise Line in its upcoming earnings disclosure. In that report, analysts expect Norwegian Cruise Line to post earnings of $0.94 per share. This would mark year-over-year growth of 23.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.76 billion, up 8.79% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.59 per share and revenue of $9.4 billion. These totals would mark changes of +127.14% and +9.91%, respectively, from last year.
Any recent changes to analyst estimates for Norwegian Cruise Line should also be noted by investors. Such recent modifications usually signify the changing landscape 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.7% increase. Norwegian Cruise Line is currently sporting a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Norwegian Cruise Line is currently being traded at a Forward P/E ratio of 12.85. For comparison, its industry has an average Forward P/E of 17.13, which means Norwegian Cruise Line is trading at a discount to the group.
Meanwhile, NCLH’s PEG ratio is currently 0.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Leisure and Recreation Services industry had an average PEG ratio of 0.78 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 79, this industry ranks in the top 32% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
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