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Norwegian Cruise Line (NCLH) Advances While Market Declines: Some Information for Investors

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Norwegian Cruise Line (NCLH - Free Report) closed at $28.46 in the latest trading session, marking a +0.07% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq decreased by 0.51%.

Shares of the cruise operator have appreciated by 10.53% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.51% and the S&P 500's gain of 1.67%.

Analysts and investors alike will be keeping a close eye on the performance of Norwegian Cruise Line in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.11, indicating a 161.11% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.09 billion, reflecting a 5.06% rise from the equivalent quarter last year.

Investors should also take note of any recent adjustments to analyst estimates for Norwegian Cruise Line. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.84% decrease. Norwegian Cruise Line is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Norwegian Cruise Line is holding a Forward P/E ratio of 13.72. This indicates a discount in contrast to its industry's Forward P/E of 20.17.

We can also see that NCLH currently has a PEG ratio of 0.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Leisure and Recreation Services industry had an average PEG ratio of 0.8 as trading concluded yesterday.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 30% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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