Norwegian Cruise Line (NCLH) ended the recent trading session at $14.87, demonstrating a -1.78% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.66%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 1.05%.
The stock of cruise operator has fallen by 2.76% in the past month, leading the Consumer Discretionary sector's loss of 6.5% and undershooting the S&P 500's gain of 0.55%.
Investors will be eagerly watching for the performance of Norwegian Cruise Line in its upcoming earnings disclosure. On that day, Norwegian Cruise Line is projected to report earnings of $0.88 per share, which would represent a year-over-year decline of 26.67%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.88 billion, indicating a 2.13% decrease compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.56 per share and a revenue of $10.05 billion, signifying shifts of -26.07% and +2.25%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Norwegian Cruise Line. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.04% decrease. Norwegian Cruise Line currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Norwegian Cruise Line currently has a Forward P/E ratio of 9.73. Its industry sports an average Forward P/E of 15.17, so one might conclude that Norwegian Cruise Line is trading at a discount comparatively.
It is also worth noting that NCLH currently has a PEG ratio of 0.76. 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. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.13.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 178, finds itself in the bottom 28% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).