Norwegian Cruise Line (NCLH) Outperforms Broader Market: What You Need to Know
Norwegian Cruise Line (NCLH) closed the latest trading day at $17.76, indicating a +1.43% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 1.23% for the day. Meanwhile, the Dow gained 1.06%, and the Nasdaq, a tech-heavy index, added 1.7%.
Prior to today's trading, shares of the cruise operator had lost 16.42% over the past month. This has lagged the Consumer Discretionary sector's loss of 2.56% and the S&P 500's gain of 0.94% in that time.
The upcoming earnings release of Norwegian Cruise Line will be of great interest to investors. The company is predicted to post an EPS of -$0.07, indicating a 93.27% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.99 billion, indicating a 30.83% increase compared to the same quarter of the previous 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, the Zacks Consensus EPS estimate has shifted 0.38% downward. As of now, Norwegian Cruise Line holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Norwegian Cruise Line is currently exchanging hands at a Forward P/E ratio of 14.98. This denotes a discount relative to the industry's average Forward P/E of 16.59.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 177, finds itself in the bottom 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
