Norwegian Cruise Line (NCLH) Outpaces Stock Market Gains: What You Should Know

·2-min read

Norwegian Cruise Line (NCLH) closed at $31.03 in the latest trading session, marking a +1.37% move from the prior day. This change outpaced the S&P 500's 0.33% gain on the day.

Heading into today, shares of the cruise operator had lost 5.58% over the past month, lagging the Consumer Discretionary sector's gain of 1.42% and the S&P 500's gain of 1.74% in that time.

Investors will be hoping for strength from NCLH as it approaches its next earnings release. On that day, NCLH is projected to report earnings of -$1.98 per share, which would represent year-over-year growth of 28.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.8 million, down 59.83% from the year-ago period.

NCLH's full-year Zacks Consensus Estimates are calling for earnings of -$6.65 per share and revenue of $994.98 million. These results would represent year-over-year changes of +23.03% and -22.26%, respectively.

Investors might also notice recent changes to analyst estimates for NCLH. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.32% lower within the past month. NCLH is currently a Zacks Rank #3 (Hold).

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 178, which puts it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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