Norwegian Cruise Line (NCLH) closed the most recent trading day at $21.96, moving -4.19% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.43%. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.94%.
The stock of cruise operator has risen by 2.69% in the past month, leading the Consumer Discretionary sector's loss of 3.62% and the S&P 500's gain of 0.89%.
Investors will be eagerly watching for the performance of Norwegian Cruise Line in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.28, marking a 7.69% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.35 billion, up 11.41% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.11 per share and a revenue of $9.94 billion, demonstrating changes of +15.93% and 0%, respectively, from the preceding 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 3.07% lower within the past month. Norwegian Cruise Line presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Norwegian Cruise Line is at present trading with a Forward P/E ratio of 8.77. This denotes a discount relative to the industry average Forward P/E of 18.22.
It is also worth noting that NCLH currently has a PEG ratio of 0.52. 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 Leisure and Recreation Services industry had an average PEG ratio of 1.37 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 34% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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