The latest trading session saw Norwegian Cruise Line (NCLH) ending at $25.42, denoting a -1.93% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 1.26%. On the other hand, the Dow registered a gain of 0.8%, and the technology-centric Nasdaq increased by 1.77%.
The cruise operator's stock has dropped by 6.16% in the past month, falling short of the Consumer Discretionary sector's loss of 4.19% and the S&P 500's loss of 2.82%.
The upcoming earnings release of Norwegian Cruise Line will be of great interest to investors. The company is expected to report EPS of $0.11, up 161.11% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $2.09 billion, reflecting a 5.24% rise from the equivalent quarter last year.
It is also important to note the recent changes to analyst estimates for Norwegian Cruise Line. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.54% increase. Right now, Norwegian Cruise Line possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Norwegian Cruise Line is presently being traded at a Forward P/E ratio of 12.52. This valuation marks a discount compared to its industry's average Forward P/E of 17.49.
Investors should also note that NCLH has a PEG ratio of 0.21 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Leisure and Recreation Services industry had an average PEG ratio of 0.79 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 35, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
