Norwegian Cruise Line (NCLH) closed at $23.29 in the latest trading session, marking a -1.65% move from the prior day. This change lagged the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.08%.
Heading into today, shares of the cruise operator had lost 6.88% over the past month, lagging the Consumer Discretionary sector's loss of 3.39% and the S&P 500's gain of 4.03%.
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. Meanwhile, the latest consensus estimate predicts the revenue to be $3.02 billion, indicating a 7.47% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.06 per share and revenue of $10.05 billion. These totals would mark changes of +13.19% and +6.02%, respectively, from last year.
It's also important for investors to be aware of any recent modifications 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 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, 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 past month, the Zacks Consensus EPS estimate has moved 2.28% higher. At present, Norwegian Cruise Line boasts a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Norwegian Cruise Line is holding a Forward P/E ratio of 11.49. This represents a discount compared to its industry average Forward P/E of 21.87.
We can additionally observe that NCLH currently boasts a PEG ratio of 0.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 1.19.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 68, this industry ranks in the top 28% of all industries, numbering over 250.
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.
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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