In the latest trading session, Norwegian Cruise Line (NCLH) closed at $22.78, marking a +2.06% move from the previous day. This move outpaced the S&P 500's daily gain of 0.19%. At the same time, the Dow added 0.66%, and the tech-heavy Nasdaq lost 0.03%.
The stock of cruise operator has risen by 18.72% in the past month, leading the Consumer Discretionary sector's loss of 0.12% and the S&P 500's gain of 0.54%.
Investors will be eagerly watching for the performance of Norwegian Cruise Line in its upcoming earnings disclosure. The company is expected to report EPS of $0.27, up 3.85% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $2.34 billion, indicating a 11% upward movement from the same quarter last year.
NCLH's full-year Zacks Consensus Estimates are calling for earnings of $2.11 per share and revenue of $9.93 billion. These results would represent year-over-year changes of +15.93% and 0%, respectively.
It is also important to note the recent changes to analyst estimates for Norwegian Cruise Line. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.07% upward. Norwegian Cruise Line is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Norwegian Cruise Line currently has a Forward P/E ratio of 8.35. This represents a discount compared to its industry average Forward P/E of 17.73.
It is also worth noting that NCLH currently has a PEG ratio of 0.5. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.2 based on yesterday's closing prices.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 44, placing it within the top 18% of over 250 industries.
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.
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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