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Norwegian Cruise Line (NCLH) Outpaces Stock Market Gains: What You Should Know

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The latest trading session saw Norwegian Cruise Line (NCLH - Free Report) ending at $25.92, denoting a +1.61% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.06%.

Shares of the cruise operator have depreciated by 5.75% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 6.18% and lagging the S&P 500's loss of 2.7%.

The upcoming earnings release of Norwegian Cruise Line will be of great interest to investors. It is anticipated that the company will report an EPS of $0.11, marking a 161.11% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.09 billion, showing a 5.24% escalation compared to the year-ago quarter.

Any recent changes to analyst estimates for Norwegian Cruise Line should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.78% rise in the Zacks Consensus EPS estimate. Norwegian Cruise Line is holding a Zacks Rank of #1 (Strong Buy) right now.

In the context of valuation, Norwegian Cruise Line is at present trading with a Forward P/E ratio of 12.5. This represents a discount compared to its industry's average Forward P/E of 18.07.

Meanwhile, NCLH's PEG ratio is currently 0.21. 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. The Leisure and Recreation Services was holding an average PEG ratio of 0.81 at yesterday's closing price.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 32, which puts it in the top 13% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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