Norwegian Cruise Line (NCLH) closed the most recent trading day at $21.96, moving +1.48% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.61%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.95%.
Heading into today, shares of the cruise operator had gained 9.63% over the past month, outpacing the Consumer Discretionary sector's gain of 5.12% and the S&P 500's gain of 3.85%.
The investment community will be paying close attention to the earnings performance of Norwegian Cruise Line in its upcoming release. The company is forecasted to report an EPS of $0.51, showcasing a 27.5% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.55 billion, indicating a 7.58% growth compared to the corresponding quarter of the prior year.
NCLH's full-year Zacks Consensus Estimates are calling for earnings of $2.03 per share and revenue of $10.06 billion. These results would represent year-over-year changes of +11.54% and +6.15%, respectively.
Any recent changes to analyst estimates for Norwegian Cruise Line should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.16% downward. Norwegian Cruise Line is currently a Zacks Rank #3 (Hold).
Looking at valuation, Norwegian Cruise Line is presently trading at a Forward P/E ratio of 10.67. This valuation marks a discount compared to its industry average Forward P/E of 21.76.
It's also important to note that NCLH currently trades at a PEG ratio of 0.32. 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 1.99.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 68, placing it within the top 28% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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