Norwegian Cruise Line (NCLH) Stock Drops Despite Market Gains: Important Facts to Note
Norwegian Cruise Line (NCLH) ended the recent trading session at $17.74, demonstrating a -0.28% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 1.07% for the day. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq gained 1.74%.
Coming into today, shares of the cruise operator had gained 0.79% in the past month. In that same time, the Consumer Discretionary sector gained 2.41%, while the S&P 500 gained 2.93%.
The upcoming earnings release of Norwegian Cruise Line will be of great interest to investors. 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%. At the same time, our most recent consensus estimate is projecting a revenue of $1.99 billion, reflecting a 30.83% rise from the equivalent quarter last year.
It is also important to note the recent changes to analyst estimates for Norwegian Cruise Line. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.94% downward. As of now, Norwegian Cruise Line holds a Zacks Rank of #3 (Hold).
In terms of valuation, Norwegian Cruise Line is currently trading at a Forward P/E ratio of 15.32. Its industry sports an average Forward P/E of 16.67, so one might conclude that Norwegian Cruise Line is trading at a discount comparatively.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
