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Is Norwegian Cruise Line (NCLH) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 11.42. This compares to its industry's average Forward P/E of 16.85. Over the last 12 months, NCLH's Forward P/E has been as high as 26.42 and as low as 8.48, with a median of 14.13.
Investors should also note that NCLH holds a PEG ratio of 0.24. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NCLH's industry has an average PEG of 0.56 right now. Within the past year, NCLH's PEG has been as high as 0.33 and as low as 0.24, with a median of 0.29.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NCLH has a P/S ratio of 0.77. This compares to its industry's average P/S of 1.12.
Finally, investors will want to recognize that NCLH has a P/CF ratio of 6.47. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. NCLH's P/CF compares to its industry's average P/CF of 13.12. Over the past year, NCLH's P/CF has been as high as 16.32 and as low as -1,471.18, with a median of 7.05.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Norwegian Cruise Line is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NCLH feels like a great value stock at the moment.
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Is Norwegian Cruise Line (NCLH) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 11.42. This compares to its industry's average Forward P/E of 16.85. Over the last 12 months, NCLH's Forward P/E has been as high as 26.42 and as low as 8.48, with a median of 14.13.
Investors should also note that NCLH holds a PEG ratio of 0.24. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NCLH's industry has an average PEG of 0.56 right now. Within the past year, NCLH's PEG has been as high as 0.33 and as low as 0.24, with a median of 0.29.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NCLH has a P/S ratio of 0.77. This compares to its industry's average P/S of 1.12.
Finally, investors will want to recognize that NCLH has a P/CF ratio of 6.47. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. NCLH's P/CF compares to its industry's average P/CF of 13.12. Over the past year, NCLH's P/CF has been as high as 16.32 and as low as -1,471.18, with a median of 7.05.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Norwegian Cruise Line is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NCLH feels like a great value stock at the moment.