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Norwegian Cruise Line (NCLH) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Norwegian Cruise Line (NCLH - Free Report) closed at $17.79, marking a +1.6% move from the previous day. This change outpaced the S&P 500's 1.27% gain on the day. At the same time, the Dow added 1.18%, and the tech-heavy Nasdaq gained 1.87%.

Prior to today's trading, shares of the cruise operator had gained 14.15% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.87% and the S&P 500's gain of 0.37% in that time.

Investors will be hoping for strength from NCLH as it approaches its next earnings release. In that report, analysts expect NCLH to post earnings of -$2.23 per share. This would mark a year-over-year decline of 200%. Our most recent consensus estimate is calling for quarterly revenue of $1.37 million, down 99.93% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$8.30 per share and revenue of $1.30 billion. These totals would mark changes of -263.06% and -79.93%, respectively, from last year.

Any recent changes to analyst estimates for NCLH should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.38% lower. NCLH is holding a Zacks Rank of #5 (Strong Sell) right now.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 242, which puts it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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