Norwegian Cruise Line (NCLH) ended the recent trading session at $25.23, demonstrating a -1.33% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.29%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.34%.
The stock of cruise operator has risen by 3.27% in the past month, leading the Consumer Discretionary sector's loss of 0.43% and the S&P 500's gain of 3.08%.
The upcoming earnings release of Norwegian Cruise Line will be of great interest to investors. On that day, Norwegian Cruise Line is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 18.18%. At the same time, our most recent consensus estimate is projecting a revenue of $3.02 billion, reflecting a 7.46% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.06 per share and a revenue of $10.05 billion, indicating changes of +13.19% and +6.04%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Norwegian Cruise Line. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.83% increase. As of now, Norwegian Cruise Line holds a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Norwegian Cruise Line has a Forward P/E ratio of 12.4 right now. This represents a discount compared to its industry average Forward P/E of 21.26.
We can also see that NCLH currently has a PEG ratio of 1.01. 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 average PEG ratio for the Leisure and Recreation Services industry stood at 1.27 at the close of the market yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 40% echelons of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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