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Is Norwegian Cruise Line (NCLH) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.27, which compares to its industry's average of 17.25. NCLH's Forward P/E has been as high as 15.63 and as low as 6.93, with a median of 10.77, all within the past year.
NCLH is also sporting a PEG ratio of 0.84. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NCLH's PEG compares to its industry's average PEG of 0.88. Over the past 52 weeks, NCLH's PEG has been as high as 0.93 and as low as 0.15, with a median of 0.24.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NCLH has a P/S ratio of 1.08. This compares to its industry's average P/S of 1.17.
Finally, we should also recognize that NCLH has a P/CF ratio of 6.57. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NCLH's current P/CF looks attractive when compared to its industry's average P/CF of 14. NCLH's P/CF has been as high as 9.67 and as low as 3.73, with a median of 6.53, all within the past year.
These are just a handful of the figures considered in Norwegian Cruise Line's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NCLH is an impressive value stock right now.
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Is Norwegian Cruise Line (NCLH) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.27, which compares to its industry's average of 17.25. NCLH's Forward P/E has been as high as 15.63 and as low as 6.93, with a median of 10.77, all within the past year.
NCLH is also sporting a PEG ratio of 0.84. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. NCLH's PEG compares to its industry's average PEG of 0.88. Over the past 52 weeks, NCLH's PEG has been as high as 0.93 and as low as 0.15, with a median of 0.24.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NCLH has a P/S ratio of 1.08. This compares to its industry's average P/S of 1.17.
Finally, we should also recognize that NCLH has a P/CF ratio of 6.57. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NCLH's current P/CF looks attractive when compared to its industry's average P/CF of 14. NCLH's P/CF has been as high as 9.67 and as low as 3.73, with a median of 6.53, all within the past year.
These are just a handful of the figures considered in Norwegian Cruise Line's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NCLH is an impressive value stock right now.