Norwegian Cruise Line (NCLH) Outpaces Stock Market Gains: What You Should Know
Norwegian Cruise Line (NCLH) closed the most recent trading day at $24.56, moving +1.07% from the previous trading session. This change outpaced the S&P 500's 0.47% gain on the day. On the other hand, the Dow registered a gain of 0.79%, and the technology-centric Nasdaq increased by 0.28%.
Shares of the cruise operator have appreciated by 22.98% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 7.13% and the S&P 500's gain of 3.48%.
The upcoming earnings release of Norwegian Cruise Line will be of great interest to investors. The company is forecasted to report an EPS of $0.94, showcasing a 23.68% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.76 billion, up 8.99% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.59 per share and revenue of $9.4 billion. These totals would mark changes of +127.14% and +9.93%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Norwegian Cruise Line. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.7% higher within the past month. Norwegian Cruise Line currently has 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 15.31 right now. This signifies a discount in comparison to the average Forward P/E of 18.44 for its industry.
We can also see that NCLH currently has a PEG ratio of 0.3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Leisure and Recreation Services industry had an average PEG ratio of 0.82 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report