Norwegian Cruise Line (NCLH) Rises Higher Than Market: Key Facts

Norwegian Cruise Line (NCLH) closed at $14.82 in the latest trading session, marking a +1.72% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.86% for the day. Meanwhile, the Dow experienced a rise of 0.98%, and the technology-dominated Nasdaq saw an increase of 0.96%.

Coming into today, shares of the cruise operator had lost 25.47% in the past month. In that same time, the Consumer Discretionary sector lost 5.09%, while the S&P 500 lost 1.96%.

Investors will be eagerly watching for the performance of Norwegian Cruise Line in its upcoming earnings disclosure. The company is expected to report EPS of $0.89, down 25.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.88 billion, down 2.13% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.57 per share and a revenue of $10.05 billion, signifying shifts of -25.59% and +2.25%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Norwegian Cruise Line. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.57% lower. Norwegian Cruise Line is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, Norwegian Cruise Line is presently being traded at a Forward P/E ratio of 9.29. This represents a discount compared to its industry average Forward P/E of 15.49.

We can also see that NCLH currently has a PEG ratio of 0.73. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.13 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 210, finds itself in the bottom 15% echelons 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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

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