In the latest trading session, Norwegian Cruise Line (NCLH) closed at $17.17, marking a -0.98% move from the previous day. This change lagged the S&P 500's 0.94% loss on the day. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq lost 1.53%.
Prior to today's trading, shares of the cruise operator had gained 0.46% over the past month. This has outpaced the Consumer Discretionary sector's loss of 2.09% and lagged the S&P 500's gain of 1.85% in that time.
Investors will be hoping for strength from Norwegian Cruise Line as it approaches its next earnings release. In that report, analysts expect Norwegian Cruise Line to post earnings of $0.72 per share. This would mark year-over-year growth of 212.5%. Our most recent consensus estimate is calling for quarterly revenue of $2.55 billion, up 58.08% from the year-ago period.
NCLH's full-year Zacks Consensus Estimates are calling for earnings of $0.85 per share and revenue of $8.71 billion. These results would represent year-over-year changes of +118.32% and +79.82%, respectively.
Any recent changes to analyst estimates for Norwegian Cruise Line should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.62% lower. Norwegian Cruise Line is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Norwegian Cruise Line currently has a Forward P/E ratio of 20.5. For comparison, its industry has an average Forward P/E of 18.69, which means Norwegian Cruise Line is trading at a premium to the group.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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