Norwegian Cruise Line (NCLH) closed the most recent trading day at $21.37, moving +1.86% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.48%. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq added 0.94%.
Coming into today, shares of the cruise operator had gained 14.77% in the past month. In that same time, the Consumer Discretionary sector gained 6.84%, while the S&P 500 gained 5.13%.
The investment community will be closely monitoring the performance of Norwegian Cruise Line in its forthcoming earnings report. The company is expected to report EPS of $0.51, up 27.5% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.55 billion, up 7.45% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.03 per share and a revenue of $10.07 billion, indicating changes of +11.54% and +6.2%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Norwegian Cruise Line. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% downward. Right now, Norwegian Cruise Line possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Norwegian Cruise Line is presently being traded at a Forward P/E ratio of 10.34. This represents a discount compared to its industry average Forward P/E of 20.73.
We can additionally observe that NCLH currently boasts a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NCLH's industry had an average PEG ratio of 1.86 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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