In the latest trading session, Norwegian Cruise Line (NCLH) closed at $18.64, seeing a +0.22% change from the previous trading day’s closing price. The stock’s change outpaced the S&P 500’s daily gain of 0.09%. Meanwhile, the Dow recorded a gain of 0.09%, while the tech-heavy Nasdaq rose 0.3%.
Shares of the cruise operator have gained 12.8% over the past month, outpacing the Consumer Discretionary sector’s gain of 2.11% and the S&P 500’s gain of 3.38%.
Norwegian Cruise Line’s upcoming earnings release will be of great interest to investors. In that report, analysts expect Norwegian Cruise Line to announce earnings of $0.34 per share, which would represent year-over-year growth of 13.33%. Meanwhile, our current consensus estimate is calling for revenue of $2.37 billion, representing year-over-year growth of 7.44%.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.43 per share and revenue of $9.35 billion, which would represent increases of +104.29% and +9.33%, respectively, from the prior year.
Investors should also pay attention to any recent changes to analyst estimates for Norwegian Cruise Line, as these latest adjustments often reflect shifting near-term business patterns, so positive estimate revisions can be interpreted as a good sign for the company’s business outlook.
Our research shows that these estimate revisions are directly correlated with proximate team stock price movements, and to capitalize on this, we have created the Zacks Rank, a proprietary model which incorporates these estimate changes 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 outperforming expectations, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.26% higher. Norwegian Cruise Line currently carries a Zacks Rank #3 (Hold).
From a valuation perspective, Norwegian Cruise Line is currently trading with a Forward P/E ratio of 12.99, which means it is trading at a discount compared to its industry’s average Forward P/E of 16.55.
It’s also worth noting that NCLH currently has a PEG ratio of 0.25. The PEG ratio is similar to the commonly used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. Leisure and Recreation Services had an average PEG ratio of 1.36 as of yesterday’s closing price.
The Leisure and Recreation Services industry belongs to the Consumer Discretionary sector. Its current Zacks Industry Rank of 98 puts this industry in the top 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to monitor all of these stock-impacting indicators and more using Zacks.com throughout the upcoming trading sessions.
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Norwegian Cruise Line Holdings (NCLH): Free Stock Analysis Report
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