In the latest trading session, Norwegian Cruise Line (NCLH) closed at $15.39, marking a +1.38% move from the previous day. This change outpaced the S&P 500's 1.47% loss on the day. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq lost 1.57%.
Prior to today's trading, shares of the cruise operator had lost 8.99% over the past month. This has lagged the Consumer Discretionary sector's loss of 3.8% and the S&P 500's loss of 1.43% in that time.
Wall Street will be looking for positivity from Norwegian Cruise Line as it approaches its next earnings report date. In that report, analysts expect Norwegian Cruise Line to post earnings of $0.70 per share. This would mark year-over-year growth of 209.38%. Our most recent consensus estimate is calling for quarterly revenue of $2.56 billion, up 58.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.82 per share and revenue of $8.71 billion, which would represent changes of +117.67% and +79.82%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Norwegian Cruise Line. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.26% lower. Norwegian Cruise Line is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Norwegian Cruise Line is currently trading at a Forward P/E ratio of 18.42. For comparison, its industry has an average Forward P/E of 18.29, which means Norwegian Cruise Line is trading at a premium to the group.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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