Norwegian Cruise Line (NCLH) closed the latest trading day at $15.54, indicating a +0.26% change from the previous session's end. This change outpaced the S&P 500's 1.57% loss on the day. Elsewhere, the Dow saw a downswing of 0.84%, while the tech-heavy Nasdaq depreciated by 2.15%.
Shares of the cruise operator witnessed a loss of 17.29% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 13.72% and the S&P 500's loss of 12.16%.
The investment community will be closely monitoring the performance of Norwegian Cruise Line in its forthcoming earnings report. On that day, Norwegian Cruise Line is projected to report earnings of $0.09 per share, which would represent a year-over-year decline of 43.75%. Simultaneously, our latest consensus estimate expects the revenue to be $2.15 billion, showing a 2.04% drop compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.10 per share and a revenue of $10.17 billion, representing changes of +15.38% and +7.31%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Norwegian Cruise Line. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.34% higher within the past month. Currently, Norwegian Cruise Line is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Norwegian Cruise Line is currently exchanging hands at a Forward P/E ratio of 7.38. This expresses a discount compared to the average Forward P/E of 15.55 of its industry.
Investors should also note that NCLH has a PEG ratio of 0.21 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 48, finds itself in the top 20% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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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