Norwegian Cruise Line (NCLH) closed at $18.83 in the latest trading session, marking a -2.23% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.45%. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 1.16%.
The stock of cruise operator has risen by 3.83% in the past month, leading the Consumer Discretionary sector's gain of 0.37% and the S&P 500's gain of 2.14%.
Market participants will be closely following the financial results of Norwegian Cruise Line in its upcoming release. The company is expected to report EPS of $0.39, down 23.53% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.62 billion, indicating a 4.23% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.7 per share and revenue of $10.14 billion, which would represent changes of -19.43% and +3.17%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Norwegian Cruise Line. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Norwegian Cruise Line holds a Zacks Rank of #3 (Hold).
Investors should also note Norwegian Cruise Line's current valuation metrics, including its Forward P/E ratio of 11.32. This expresses a discount compared to the average Forward P/E of 16.66 of its industry.
We can additionally observe that NCLH currently boasts a PEG ratio of 1.07. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Leisure and Recreation Services industry had an average PEG ratio of 1.51 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 197, placing it within the bottom 20% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).