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Norwegian Cruise Line (NCLH) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Norwegian Cruise Line (NCLH - Free Report) closed the most recent trading day at $23.82, moving -2.14% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.19% for the day. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Coming into today, shares of the cruise operator had gained 12.43% in the past month. In that same time, the Consumer Discretionary sector gained 0.21%, while the S&P 500 gained 2.26%.

The investment community will be closely monitoring the performance of Norwegian Cruise Line in its forthcoming earnings report. In that report, analysts expect Norwegian Cruise Line to post earnings of $0.27 per share. This would mark year-over-year growth of 3.85%. At the same time, our most recent consensus estimate is projecting a revenue of $2.34 billion, reflecting a 11% rise from the equivalent quarter last year.

NCLH's full-year Zacks Consensus Estimates are calling for earnings of $2.11 per share and revenue of $9.93 billion. These results would represent year-over-year changes of +15.93% and 0%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Norwegian Cruise Line. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.49% higher. Norwegian Cruise Line is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Norwegian Cruise Line has a Forward P/E ratio of 9.1 right now. This indicates a discount in contrast to its industry's Forward P/E of 18.61.

It's also important to note that NCLH currently trades at a PEG ratio of 0.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 1.27.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 38% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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