In the latest trading session, Norwegian Cruise Line (NCLH) closed at $24.53, marking a -4.4% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.21% for the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 0.45%.
Shares of the cruise operator have appreciated by 6.92% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 5.33%, and the S&P 500's gain of 3.07%.
Investors will be eagerly watching for the performance of Norwegian Cruise Line in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.17, marking a 18.18% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.02 billion, indicating a 7.67% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.04 per share and revenue of $10.06 billion, indicating changes of +12.09% and +6.08%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Norwegian Cruise Line. 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 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.48% higher within the past month. Norwegian Cruise Line is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Norwegian Cruise Line's current valuation metrics, including its Forward P/E ratio of 12.61. This signifies a discount in comparison to the average Forward P/E of 21.29 for its industry.
It is also worth noting that NCLH currently has a PEG ratio of 1.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Leisure and Recreation Services industry had an average PEG ratio of 1.31 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 155, finds itself in the bottom 38% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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