Back to top

Image: Bigstock

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

Read MoreHide Full Article

Norwegian Cruise Line (NCLH - Free Report) closed at $16.55 in the latest trading session, marking a +1.6% move from the prior day. This change outpaced the S&P 500's 0.96% gain on the day. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 1.3%.

Shares of the cruise operator have depreciated by 5.57% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 2.64% and the S&P 500's gain of 3.69%.

Market participants will be closely following the financial results of Norwegian Cruise Line in its upcoming release. The company is forecasted to report an EPS of -$0.07, showcasing a 93.27% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.99 billion, indicating a 31.14% increase compared to the same quarter of the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Norwegian Cruise Line. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.7% lower within the past month. Norwegian Cruise Line is currently sporting a Zacks Rank of #4 (Sell).

In the context of valuation, Norwegian Cruise Line is at present trading with a Forward P/E ratio of 14.13. This expresses a discount compared to the average Forward P/E of 15.45 of its industry.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 101, positioning it in the top 41% 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. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Norwegian Cruise Line Holdings Ltd. (NCLH) - free report >>

Published in