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Norwegian Cruise Line (NCLH) Stock Dips While Market Gains: Key Facts

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In the latest close session, Norwegian Cruise Line (NCLH - Free Report) was down 1.79% at $24.19. The stock trailed the S&P 500, which registered a daily gain of 0.34%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.42%.

Shares of the cruise operator have depreciated by 0.36% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 0.7%, and lagging the S&P 500's gain of 3.54%.

Investors will be eagerly watching for the performance of Norwegian Cruise Line in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.17, showcasing a 18.18% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $3.02 billion, indicating a 7.46% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.06 per share and a revenue of $10.05 billion, indicating changes of +13.19% and +6.04%, respectively, from the former year.

Any recent changes to analyst estimates for Norwegian Cruise Line should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 1.83% higher. As of now, Norwegian Cruise Line holds a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Norwegian Cruise Line has a Forward P/E ratio of 11.95 right now. This indicates a discount in contrast to its industry's Forward P/E of 20.79.

Meanwhile, NCLH's PEG ratio is currently 0.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.26.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 30% 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.

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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