Norwegian Cruise Line (NCLH) Stock Drops Despite Market Gains: Important Facts to Note

Norwegian Cruise Line (NCLH) ended the recent trading session at $18.93, demonstrating a -2.32% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.11%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.18%.

Coming into today, shares of the cruise operator had lost 8.2% in the past month. In that same time, the Consumer Discretionary sector lost 6.69%, while the S&P 500 lost 4.28%.

Analysts and investors alike will be keeping a close eye on the performance of Norwegian Cruise Line in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.16, signifying a 128.57% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.34 billion, up 10.06% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.35 per share and a revenue of $10.56 billion, signifying shifts of +11.37% and +7.49%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Norwegian Cruise Line. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.82% decrease. Norwegian Cruise Line presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Norwegian Cruise Line has a Forward P/E ratio of 8.26 right now. This represents a discount compared to its industry average Forward P/E of 15.97.

It's also important to note that NCLH currently trades at a PEG ratio of 0.5. 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 1.3 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 90, putting it in the top 37% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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