Norwegian Cruise Line (NCLH) ended the recent trading session at $22.85, demonstrating a -2.02% change from the preceding day's closing price. This change lagged the S&P 500's 0.47% gain on the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.9%.
The cruise operator's stock has dropped by 4.93% in the past month, falling short of the Consumer Discretionary sector's loss of 3.62% and the S&P 500's loss of 0.16%.
The investment community will be paying close attention to the earnings performance of Norwegian Cruise Line in its upcoming release. The company is expected to report EPS of $0.28, up 7.69% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.35 billion, reflecting a 11.41% rise from the equivalent quarter last year.
NCLH's full-year Zacks Consensus Estimates are calling for earnings of $2.11 per share and revenue of $9.94 billion. These results would represent year-over-year changes of +15.93% and +4.87%, respectively.
Investors might also notice recent changes to analyst estimates for Norwegian Cruise Line. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.07% lower. Norwegian Cruise Line is currently a Zacks Rank #3 (Hold).
In terms of valuation, Norwegian Cruise Line is presently being traded at a Forward P/E ratio of 8.92. This valuation marks a discount compared to its industry average Forward P/E of 18.93.
We can also see that NCLH currently has a PEG ratio of 0.53. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Leisure and Recreation Services industry stood at 1.4 at the close of the market yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 168, placing it within the bottom 32% of over 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.
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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