Norwegian Cruise Line (NCLH) ended the recent trading session at $26.01, demonstrating a -2.4% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.94%.
Prior to today's trading, shares of the cruise operator had gained 9.67% outpaced the Consumer Discretionary sector's gain of 3.04% and the S&P 500's gain of 2.32%.
The upcoming earnings release of Norwegian Cruise Line will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.17, reflecting a 18.18% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.02 billion, showing a 7.67% escalation compared to the year-ago quarter.
NCLH's full-year Zacks Consensus Estimates are calling for earnings of $2.05 per share and revenue of $10.06 billion. These results would represent year-over-year changes of +12.64% and +6.08%, respectively.
Investors might also notice recent changes to analyst estimates for Norwegian Cruise Line. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.96% increase. At present, Norwegian Cruise Line boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Norwegian Cruise Line has a Forward P/E ratio of 13.02 right now. This signifies a discount in comparison to the average Forward P/E of 20.81 for its industry.
It's also important to note that NCLH currently trades at a PEG ratio of 1.06. 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 1.33 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 155, this industry ranks in the bottom 38% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
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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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