Here's Why Norwegian Cruise Line (NCLH) Fell More Than Broader Market
Norwegian Cruise Line (NCLH) closed the latest trading day at $17.08, indicating a -0.99% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.56%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.59%.
Prior to today's trading, shares of the cruise operator had lost 16.63% over the past month. This has lagged the Consumer Discretionary sector's loss of 2.54% and the S&P 500's gain of 1.2% in that time.
The investment community will be paying close attention to the earnings performance of Norwegian Cruise Line in its upcoming release. In that report, analysts expect Norwegian Cruise Line to post earnings of -$0.07 per share. This would mark year-over-year growth of 93.27%. Our most recent consensus estimate is calling for quarterly revenue of $1.99 billion, up 30.83% from the year-ago period.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Norwegian Cruise Line. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.38% lower. As of now, Norwegian Cruise Line holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Norwegian Cruise Line has a Forward P/E ratio of 14.76 right now. This signifies a discount in comparison to the average Forward P/E of 16.28 for its industry.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 189, finds itself in the bottom 25% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
