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Should Value Investors Buy Norwegian Cruise Line (NCLH) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 12.94 right now. For comparison, its industry sports an average P/E of 20.23. Over the last 12 months, NCLH's Forward P/E has been as high as 26.42 and as low as 8.48, with a median of 11.70.
Investors should also note that NCLH holds a PEG ratio of 0.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NCLH's industry currently sports an average PEG of 0.74. Within the past year, NCLH's PEG has been as high as 0.33 and as low as 0.18, with a median of 0.22.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NCLH has a P/S ratio of 1.13. This compares to its industry's average P/S of 1.18.
Finally, our model also underscores that NCLH has a P/CF ratio of 8.99. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.01. Within the past 12 months, NCLH's P/CF has been as high as 16.32 and as low as 5.32, with a median of 7.09.
These are just a handful of the figures considered in Norwegian Cruise Line's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NCLH is an impressive value stock right now.
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Should Value Investors Buy Norwegian Cruise Line (NCLH) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Norwegian Cruise Line (NCLH - Free Report) . NCLH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 12.94 right now. For comparison, its industry sports an average P/E of 20.23. Over the last 12 months, NCLH's Forward P/E has been as high as 26.42 and as low as 8.48, with a median of 11.70.
Investors should also note that NCLH holds a PEG ratio of 0.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NCLH's industry currently sports an average PEG of 0.74. Within the past year, NCLH's PEG has been as high as 0.33 and as low as 0.18, with a median of 0.22.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NCLH has a P/S ratio of 1.13. This compares to its industry's average P/S of 1.18.
Finally, our model also underscores that NCLH has a P/CF ratio of 8.99. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.01. Within the past 12 months, NCLH's P/CF has been as high as 16.32 and as low as 5.32, with a median of 7.09.
These are just a handful of the figures considered in Norwegian Cruise Line's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NCLH is an impressive value stock right now.