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

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Norwegian Cruise Line (NCLH - Free Report) closed at $18.72 in the latest trading session, marking a -1.89% move from the prior day. This change lagged the S&P 500's 0.38% gain on the day. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.24%.

The stock of cruise operator has fallen by 1.85% in the past month, lagging the Consumer Discretionary sector's gain of 6.34% and the S&P 500's gain of 6.6%.

The upcoming earnings release of Norwegian Cruise Line will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.51, reflecting a 27.5% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.55 billion, indicating a 7.45% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.04 per share and a revenue of $10.07 billion, representing changes of +12.09% and +6.2%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Norwegian Cruise Line. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.64% lower. Right now, Norwegian Cruise Line possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Norwegian Cruise Line is presently trading at a Forward P/E ratio of 9.34. This valuation marks a discount compared to its industry average Forward P/E of 19.66.

It's also important to note that NCLH currently trades at a PEG ratio of 0.28. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.48 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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