Norwegian Cruise Line (NCLH) Surpasses Market Returns: Some Facts Worth Knowing
Norwegian Cruise Line (NCLH) closed the most recent trading day at $19.65, moving +1.29% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 0.82%.
Shares of the cruise operator have appreciated by 19.31% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 1.33% and the S&P 500's gain of 1.76%.
Investors will be eagerly watching for the performance of Norwegian Cruise Line in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.11, signifying a 136.67% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.22 billion, up 22.09% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.25 per share and revenue of $9.37 billion, which would represent changes of +78.57% and +9.6%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Norwegian Cruise Line. These revisions help to show the ever-changing nature of near-term business trends. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 14.23% higher within the past month. Norwegian Cruise Line is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Norwegian Cruise Line is currently exchanging hands at a Forward P/E ratio of 15.48. Its industry sports an average Forward P/E of 15.9, so one might conclude that Norwegian Cruise Line is trading at a discount comparatively.
Investors should also note that NCLH has a PEG ratio of 0.32 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.22 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
