Norwegian Cruise Line (NCLH) closed the most recent trading day at $20.05, moving -4.16% from the previous trading session. This change lagged the S&P 500's 1.33% loss on the day. At the same time, the Dow lost 0.95%, and the tech-heavy Nasdaq lost 1.59%.
Heading into today, shares of the cruise operator had lost 3.59% over the past month, lagging the Consumer Discretionary sector's gain of 2.67% and the S&P 500's gain of 0.58%.
Market participants will be closely following the financial results of Norwegian Cruise Line in its upcoming release. On that day, Norwegian Cruise Line is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 157.14%. Our most recent consensus estimate is calling for quarterly revenue of $2.35 billion, up 10.6% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.54 per share and revenue of $10.68 billion, which would represent changes of +20.38% and +8.7%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Norwegian Cruise Line. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has shifted 1.97% downward. Norwegian Cruise Line currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Norwegian Cruise Line is currently trading at a Forward P/E ratio of 8.24. This indicates a discount in contrast to its industry's Forward P/E of 16.45.
We can additionally observe that NCLH currently boasts a PEG ratio of 0.49. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. 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. At present, this industry carries a Zacks Industry Rank of 180, placing it within the bottom 27% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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