Norwegian Cruise Line (NCLH) ended the recent trading session at $15.35, demonstrating a -1.41% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.06%. Meanwhile, the Dow experienced a rise of 0.38%, and the technology-dominated Nasdaq saw a decrease of 0.44%.
Prior to today's trading, shares of the cruise operator had gained 5.06% outpaced the Consumer Discretionary sector's gain of 1.39% and the S&P 500's gain of 2.36%.
Analysts and investors alike will be keeping a close eye on the performance of Norwegian Cruise Line in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.88, indicating a 26.67% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $2.88 billion, indicating a 2.13% decline compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.56 per share and revenue of $10.05 billion. These totals would mark changes of -26.07% and +2.25%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Norwegian Cruise Line. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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, the Zacks Consensus EPS estimate has shifted 1.04% downward. Norwegian Cruise Line is currently sporting a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Norwegian Cruise Line currently has a Forward P/E ratio of 10.01. This represents a discount compared to its industry average Forward P/E of 15.7.
Meanwhile, NCLH's PEG ratio is currently 0.78. 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. The Leisure and Recreation Services industry had an average PEG ratio of 1.14 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 42% echelons 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.
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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Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).