Norwegian Cruise Line (NCLH) Stock Drops Despite Market Gains: Important Facts to Note
Norwegian Cruise Line (NCLH) closed the latest trading day at $19.56, indicating a -1.21% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 1.12% for the day. Meanwhile, the Dow experienced a rise of 0.61%, and the technology-dominated Nasdaq saw an increase of 1.54%.
Shares of the cruise operator witnessed a gain of 18.99% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 1.03% and the S&P 500's gain of 2.06%.
Analysts and investors alike will be keeping a close eye on the performance of Norwegian Cruise Line in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.16, marking a 46.67% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.2 billion, indicating a 20.53% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.17 per share and revenue of $9.36 billion, which would represent changes of +67.14% and +9.44%, respectively, from 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Norwegian Cruise Line is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, Norwegian Cruise Line is presently trading at a Forward P/E ratio of 16.9. This represents a premium compared to its industry's average Forward P/E of 16.
Also, we should mention that NCLH has a PEG ratio of 0.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Leisure and Recreation Services industry was having an average PEG ratio of 1.25.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
