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Norwegian Cruise Line (NCLH) Outperforms Broader Market: What You Need to Know

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Norwegian Cruise Line (NCLH - Free Report) closed the latest trading day at $16.65, indicating a +1.28% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 1.18% for the day. On the other hand, the Dow registered a gain of 0.87%, and the technology-centric Nasdaq increased by 1.6%.

The cruise operator's shares have seen a decrease of 0.3% over the last month, surpassing the Consumer Discretionary sector's loss of 5.99% and the S&P 500's loss of 5.17%.

The investment community will be closely monitoring the performance of Norwegian Cruise Line in its forthcoming earnings report. In that report, analysts expect Norwegian Cruise Line to post earnings of $0.70 per share. This would mark year-over-year growth of 209.38%. In the meantime, our current consensus estimate forecasts the revenue to be $2.55 billion, indicating a 58.15% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.82 per share and revenue of $8.69 billion. These totals would mark changes of +117.67% and +79.49%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Norwegian Cruise Line. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 6.5% lower within the past month. Norwegian Cruise Line is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Norwegian Cruise Line is presently trading at a Forward P/E ratio of 20.08. This denotes a premium relative to the industry's average Forward P/E of 19.01.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NCLH in the coming trading sessions, be sure to utilize Zacks.com.


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