Norwegian Cruise Line (NCLH) Surges 7.6%: Is This an Indication of Further Gains?
Norwegian Cruise Line (NCLH) shares soared 7.6% in the last trading session to close at $21.07. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 32.2% gain over the past four weeks.
Norwegian Cruise’s rally is buoyed by optimism regarding the company’s strength in solid booking trends and strong consumer demand . Also, its focus on strategic marketing and fleet-expansion efforts bodes well.
This cruise operator is expected to post quarterly earnings of $0.26 per share in its upcoming report, which represents a year-over-year change of +122.8%. Revenues are expected to be $2.18 billion, up 83.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Norwegian Cruise Line, the consensus EPS estimate for the quarter has been revised 3.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NCLH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Norwegian Cruise Line belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, OneSpaWorld (OSW), closed the last trading session 0.6% higher at $11.31. Over the past month, OSW has returned 8.1%.
For OneSpaWorld , the consensus EPS estimate for the upcoming report has changed +7.7% over the past month to $0.14. This represents a change of +250% from what the company reported a year ago. OneSpaWorld currently has a Zacks Rank of #2 (Buy).
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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
OneSpaWorld Holdings Limited (OSW) : Free Stock Analysis Report
