Norwegian Cruise Line (NCLH) ended the recent trading session at $19.02, demonstrating a -1.96% change from the preceding day's closing price. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.31%.
Shares of the cruise operator have appreciated by 7.24% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 5.05%, and the S&P 500's gain of 5.05%.
The upcoming earnings release of Norwegian Cruise Line will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.51, reflecting a 27.5% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.55 billion, reflecting a 7.45% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.03 per share and a revenue of $10.07 billion, representing changes of +11.54% and +6.2%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Norwegian Cruise Line. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.08% downward. Norwegian Cruise Line is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Norwegian Cruise Line is at present trading with a Forward P/E ratio of 9.56. This represents a discount compared to its industry average Forward P/E of 20.28.
One should further note that NCLH currently holds a PEG ratio of 0.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Leisure and Recreation Services industry was having an average PEG ratio of 1.85.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 65, which puts it in the top 27% 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.
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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