Yahoo Finance Why the Market Dipped But Norwegian Cruise Line (NCLH) Gained Today
Norwegian Cruise Line (NCLH) closed at $17.29 in the latest trading session, marking a +0.64% move from the prior day. This move outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.18%.
The cruise operator's shares have seen an increase of 10.34% over the last month, surpassing the Consumer Discretionary sector's gain of 0.56% and the S&P 500's gain of 3.15%.
The investment community will be paying close attention to the earnings performance of Norwegian Cruise Line in its upcoming release. The company is forecasted to report an EPS of $0.34, showcasing a 13.33% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.37 billion, reflecting a 7.44% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.42 per share and a revenue of $9.35 billion, indicating changes of +102.86% and +9.33%, respectively, from the former year.
Any recent changes to analyst estimates for Norwegian Cruise Line should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 4.2% rise in the Zacks Consensus EPS estimate. As of now, Norwegian Cruise Line holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Norwegian Cruise Line is currently exchanging hands at a Forward P/E ratio of 12.14. This valuation marks a discount compared to its industry's average Forward P/E of 16.6.
We can additionally observe that NCLH currently boasts a PEG ratio of 0.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 1.34.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 84, positioning it in the top 34% 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.
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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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
