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Norwegian Cruise Line (NCLH) Increases Despite Market Slip: Here's What You Need to Know

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Norwegian Cruise Line (NCLH - Free Report) closed at $23.92 in the latest trading session, marking a +0.89% move from the prior day. This change outpaced the S&P 500's 0.05% loss on the day. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.18%.

Shares of the cruise operator have appreciated by 12.96% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 3.25% and the S&P 500's gain of 2.76%.

Analysts and investors alike will be keeping a close eye on the performance of Norwegian Cruise Line in its upcoming earnings disclosure. The company's earnings report is set to go public on October 31, 2024. The company is predicted to post an EPS of $0.94, indicating a 23.68% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.76 billion, showing an 8.84% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.59 per share and a revenue of $9.4 billion, signifying shifts of +127.14% and +9.9%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.51% higher. Norwegian Cruise Line is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that Norwegian Cruise Line has a Forward P/E ratio of 14.91 right now. This expresses a discount compared to the average Forward P/E of 18.77 of its industry.

One should further note that NCLH currently holds a PEG ratio of 0.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Leisure and Recreation Services industry was having an average PEG ratio of 0.8.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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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