Norwegian Cruise Line (NCLH) Falls More Steeply Than Broader Market: What Investors Need to Know
The most recent trading session ended with Norwegian Cruise Line (NCLH) standing at $17.51, reflecting a -0.45% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.07%.
The cruise operator's stock has dropped by 8.48% in the past month, falling short of the Consumer Discretionary sector's gain of 1.29% and the S&P 500's gain of 3.98%.
Market participants will be closely following the financial results 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%. In the meantime, our current consensus estimate forecasts the revenue to be $1.99 billion, indicating a 30.95% growth compared to the corresponding quarter of the prior year.
Investors might also notice recent changes to analyst estimates for Norwegian Cruise Line. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.93% increase. Norwegian Cruise Line is currently a Zacks Rank #3 (Hold).
Investors should also note Norwegian Cruise Line's current valuation metrics, including its Forward P/E ratio of 15.05. This valuation marks a discount compared to its industry's average Forward P/E of 16.25.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 99, placing it within the top 40% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NCLH in the coming trading sessions, be sure to utilize Zacks.com.
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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
