We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) touched a new 52-week high of $22.16 on Jul 3. The stock pulled back to end the trading session at $21.91, up 0.6% from the previous day’s closing price of $21.77.
The company is benefiting from the solid booking environment courtesy of increased consumer demand along with fleet expansion initiatives. Although inflationary pressures and geopolitical tensions are concerns, its focus on strategic marketing efforts to drive demand and high-value bookings aids its growth trend.
Stock Performance
NCLH has gained 94.4% in the past year compared with the Zacks Leisure and Recreation Services industry’s 32.6% growth, the Zacks Consumer Discretionary sector’s rally of 11.1% and the S&P 500 Index’s rise of 15.7%.
Image Source: Zacks Investment Research
Earnings estimates for 2023 have moved up to $0.78 per share from $0.76 per share in the past 60 days. The positive trend signifies bullish analyst sentiments, indicating robust fundamentals and sparking the expectation of an outperformance in the near term.
Let’s delve deeper into the factors favoring this Zacks Rank #3 (Hold) company.
Factors Favoring NCLH
Solid Booking Trend: Norwegian Cruise witnessed a rise in its bookings due to increased consumer demand post the pandemic. During the first quarter of 2023, the company reported solid booking volumes courtesy of strong demand in the WAVE season. The company stated that the cumulative booked position for 2023 is higher than the 2019 level. Also, it reported strength in advance ticket sales with a balance of $3.4 billion, up 26% (from the previous quarter’s levels) and 60% (from 2019 levels).
Encouraging Fleet Expansion: Norwegian Cruise is constantly looking to expand its fleet size. It has plans to introduce nine more ships through 2027. A majority of them are on order for the Norwegian Cruise Line, while the rest are for Oceania Cruises and Regent Seven Seas Cruises. The company anticipates the additions to increase the count to approximately 82,000. In 2023, the company anticipates the additions of Norwegian Viva, Oceania Cruises Vista and Regent Seven Seas Grandeur to its fleet.
Strategic Initiatives: The company emphasizes on its booking window to drive the top line. The initiative not only evaluates the extent and willingness of consumers to spend on cruise travel but also provides better visibility for price increases and moderating marketing expenses. During the first quarter of 2023, the booking window remained strong compared to 2019 levels. It intends to focus on strategic marketing efforts to drive demand and high-value bookings in the upcoming periods.
Key Picks
Some better-ranked stocks from the same sector are Royal Caribbean Cruises Ltd. (RCL - Free Report) , Hilton Grand Vacations Inc. (HGV - Free Report) and Marriott International, Inc. (MAR - Free Report) .
RCL has a trailing four-quarter earnings surprise of 26.4%, on average. The stock has surged 108.7% in the year-to-date period. The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) indicates a rise of 48.7% and 162.9%, respectively, from the year-ago period’s reported levels.
Hilton Grand currently carries a Zacks Rank of 2. HGV delivered a trailing four-quarter earnings surprise of 27.9%, on average. Shares of the company have gained 19.5% in the year-to-date period.
The consensus estimate for HGV’s 2023 sales and EPS indicates increases of 8.7% and 12.9%, respectively, from the year-ago period’s reported levels.
Marriott carries a Zacks Rank of 2 at present. MAR has a trailing four-quarter earnings surprise of 8%, on average. Shares of the company have gained 23.7% in the year-to-date period.
The Zacks Consensus Estimate for MAR’s 2023 sales and EPS indicates a rise of 13.1% and 25.7%, respectively, from the year-ago period’s levels.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Norwegian Cruise (NCLH) Hits 52-Week High: What's Aiding It?
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) touched a new 52-week high of $22.16 on Jul 3. The stock pulled back to end the trading session at $21.91, up 0.6% from the previous day’s closing price of $21.77.
The company is benefiting from the solid booking environment courtesy of increased consumer demand along with fleet expansion initiatives. Although inflationary pressures and geopolitical tensions are concerns, its focus on strategic marketing efforts to drive demand and high-value bookings aids its growth trend.
Stock Performance
NCLH has gained 94.4% in the past year compared with the Zacks Leisure and Recreation Services industry’s 32.6% growth, the Zacks Consumer Discretionary sector’s rally of 11.1% and the S&P 500 Index’s rise of 15.7%.
Image Source: Zacks Investment Research
Earnings estimates for 2023 have moved up to $0.78 per share from $0.76 per share in the past 60 days. The positive trend signifies bullish analyst sentiments, indicating robust fundamentals and sparking the expectation of an outperformance in the near term.
Let’s delve deeper into the factors favoring this Zacks Rank #3 (Hold) company.
Factors Favoring NCLH
Solid Booking Trend: Norwegian Cruise witnessed a rise in its bookings due to increased consumer demand post the pandemic. During the first quarter of 2023, the company reported solid booking volumes courtesy of strong demand in the WAVE season. The company stated that the cumulative booked position for 2023 is higher than the 2019 level. Also, it reported strength in advance ticket sales with a balance of $3.4 billion, up 26% (from the previous quarter’s levels) and 60% (from 2019 levels).
Encouraging Fleet Expansion: Norwegian Cruise is constantly looking to expand its fleet size. It has plans to introduce nine more ships through 2027. A majority of them are on order for the Norwegian Cruise Line, while the rest are for Oceania Cruises and Regent Seven Seas Cruises. The company anticipates the additions to increase the count to approximately 82,000. In 2023, the company anticipates the additions of Norwegian Viva, Oceania Cruises Vista and Regent Seven Seas Grandeur to its fleet.
Strategic Initiatives: The company emphasizes on its booking window to drive the top line. The initiative not only evaluates the extent and willingness of consumers to spend on cruise travel but also provides better visibility for price increases and moderating marketing expenses. During the first quarter of 2023, the booking window remained strong compared to 2019 levels. It intends to focus on strategic marketing efforts to drive demand and high-value bookings in the upcoming periods.
Key Picks
Some better-ranked stocks from the same sector are Royal Caribbean Cruises Ltd. (RCL - Free Report) , Hilton Grand Vacations Inc. (HGV - Free Report) and Marriott International, Inc. (MAR - Free Report) .
Royal Caribbean Cruises presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RCL has a trailing four-quarter earnings surprise of 26.4%, on average. The stock has surged 108.7% in the year-to-date period. The Zacks Consensus Estimate for RCL’s 2023 sales and earnings per share (EPS) indicates a rise of 48.7% and 162.9%, respectively, from the year-ago period’s reported levels.
Hilton Grand currently carries a Zacks Rank of 2. HGV delivered a trailing four-quarter earnings surprise of 27.9%, on average. Shares of the company have gained 19.5% in the year-to-date period.
The consensus estimate for HGV’s 2023 sales and EPS indicates increases of 8.7% and 12.9%, respectively, from the year-ago period’s reported levels.
Marriott carries a Zacks Rank of 2 at present. MAR has a trailing four-quarter earnings surprise of 8%, on average. Shares of the company have gained 23.7% in the year-to-date period.
The Zacks Consensus Estimate for MAR’s 2023 sales and EPS indicates a rise of 13.1% and 25.7%, respectively, from the year-ago period’s levels.