Norwegian Cruise Line (NCLH) closed the most recent trading day at $20.87, moving +2.45% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 1.16% for the day. Elsewhere, the Dow saw an upswing of 1.21%, while the tech-heavy Nasdaq appreciated by 1.18%.
Heading into today, shares of the cruise operator had lost 11.86% over the past month, lagging the Consumer Discretionary sector's loss of 3.58% and the S&P 500's loss of 0.42%.
The investment community will be paying close attention to the earnings performance of Norwegian Cruise Line in its upcoming release. On that day, Norwegian Cruise Line is projected to report earnings of $0.28 per share, which would represent year-over-year growth of 7.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.34 billion, up 11.02% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.12 per share and revenue of $9.93 billion. These totals would mark changes of +16.48% and 0%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Norwegian Cruise Line. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection has moved 2.94% lower. Norwegian Cruise Line is currently a Zacks Rank #3 (Hold).
Digging into valuation, Norwegian Cruise Line currently has a Forward P/E ratio of 7.71. For comparison, its industry has an average Forward P/E of 17.14, which means Norwegian Cruise Line is trading at a discount to the group.
We can also see that NCLH currently has a PEG ratio of 0.44. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.45.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 29% 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.
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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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