Norwegian Cruise Line (NCLH) closed at $22.74 in the latest trading session, marking a -2.28% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.4%. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq appreciated by 0.18%.
The cruise operator's shares have seen an increase of 25.44% over the last month, surpassing the Consumer Discretionary sector's gain of 6.85% and the S&P 500's gain of 4.97%.
Analysts and investors alike will be keeping a close eye on the performance of Norwegian Cruise Line in its upcoming earnings disclosure. The company's earnings report is set to go public on July 31, 2025. The company is expected to report EPS of $0.51, up 27.5% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.55 billion, indicating a 7.58% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.03 per share and revenue of $10.06 billion, which would represent changes of +11.54% and +6.15%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Norwegian Cruise Line. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 0.08% lower. Norwegian Cruise Line is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Norwegian Cruise Line is currently trading at a Forward P/E ratio of 11.48. This denotes a discount relative to the industry average Forward P/E of 22.31.
One should further note that NCLH currently holds a PEG ratio of 0.35. 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 currently had an average PEG ratio of 1.98 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% 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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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