In the latest trading session, Norwegian Cruise Line (NCLH) closed at $23.19, marking a -1.7% move from the previous day. This change lagged the S&P 500's 0.14% gain on the day. Meanwhile, the Dow experienced a drop of 0.04%, and the technology-dominated Nasdaq saw an increase of 0.38%.
The cruise operator's stock has climbed by 25.08% in the past month, exceeding the Consumer Discretionary sector's gain of 5.02% and the S&P 500's gain of 5.35%.
Market participants will be closely following the financial results of Norwegian Cruise Line in its upcoming release. The company plans to announce its earnings on July 31, 2025. The company's upcoming EPS is projected at $0.51, signifying a 27.50% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.55 billion, showing a 7.58% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.01 per share and a revenue of $10.05 billion, representing changes of +10.44% and +6.02%, respectively, from the prior year.
Any recent changes to analyst estimates for Norwegian Cruise Line should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% downward. Norwegian Cruise Line presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Norwegian Cruise Line is currently exchanging hands at a Forward P/E ratio of 11.71. This indicates a discount in contrast to its industry's Forward P/E of 22.59.
Also, we should mention that NCLH has a PEG ratio of 0.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. NCLH's industry had an average PEG ratio of 1.83 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 149, this industry ranks in the bottom 40% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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