We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Should Value Investors Buy Norwegian Cruise Line (NCLH) Stock?
Read MoreHide Full Article
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.27, while its industry has an average P/E of 16.63. Over the last 12 months, NCLH's Forward P/E has been as high as 15.63 and as low as 6.93, with a median of 10.77.
We also note that NCLH holds 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 1.16. Over the last 12 months, 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 use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NCLH has a P/S ratio of 0.89. This compares to its industry's average P/S of 2.17.
Finally, investors will want to 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.38. Within the past 12 months, NCLH's P/CF has been as high as 9.67 and as low as 3.73, with a median of 6.53.
Value investors will likely look at more than just these metrics, but the above data helps show that Norwegian Cruise Line is likely undervalued currently. And when considering the strength of its earnings outlook, NCLH sticks out as one of the market's strongest value stocks.
View the Zacks #1 Rank List
Image: Bigstock
Should Value Investors Buy Norwegian Cruise Line (NCLH) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.27, while its industry has an average P/E of 16.63. Over the last 12 months, NCLH's Forward P/E has been as high as 15.63 and as low as 6.93, with a median of 10.77.
We also note that NCLH holds 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 1.16. Over the last 12 months, 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 use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NCLH has a P/S ratio of 0.89. This compares to its industry's average P/S of 2.17.
Finally, investors will want to 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.38. Within the past 12 months, NCLH's P/CF has been as high as 9.67 and as low as 3.73, with a median of 6.53.
Value investors will likely look at more than just these metrics, but the above data helps show that Norwegian Cruise Line is likely undervalued currently. And when considering the strength of its earnings outlook, NCLH sticks out as one of the market's strongest value stocks.