Miami, Florida-based Norwegian Cruise Line Holdings Ltd. (NCLH) operates as a cruise company in North America and internationally. The company has a market capitalization of $6.7 billion and offers products and services under the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands, including accommodations, dining venues, bars, and lounges.
Companies with a market cap of $10 billion or more are typically referred to as “large-cap stocks.” NCLH fits perfectly into that category, with its market cap exceeding this threshold and reflecting its substantial size and influence in the travel services industry.
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NCLH stock reached its 52-week high of $26.09 on Sept. 29 and has slipped 44% from that peak. The stock has fallen 30.4% over the past three months, lagging behind the Nasdaq Composite ($NASX), which grew 6.7% over the same period.
www.barchart.comOver the longer term, however, the scenario remains the same. NCLH is down 41.6% over the past 52 weeks, while NASX is up 20.9% over the same period, outperforming the stock.
NCLH has been trading below its 200-day and 50-day moving averages since August, showcasing bearish momentum.
www.barchart.comNCLH’s fundamentals and business numbers have disappointed investors and analysts, leading to a long-term price decline. Its number of passenger cruise days has gone down over the last two years, hinting at weaker demand for its offerings. Moreover, the company’s free cash flow margin remains negative, although with some hope of improvement soon, but still below average. Additionally, NCLH’s short cash runway increases the chance of a capital raise that dilutes existing shareholders.
When stacked against its peer in the travel services industry, Carnival Corporation Ltd. (CCL) shares have fallen 27% over the past 52 weeks, also outperforming NCLH.
Wall Street’s view of NCLH stock is somewhat bullish. Among the 26 analysts covering the stock, the overall consensus rating is “Moderate Buy.” Its mean price target of $19.56 offers a 33.9% upside potential.
On the date of publication, Aritra Gangopadhyay did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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