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

Norwegian Cruise Line (NCLH) closed at $11.82 in the latest trading session, marking a -1.25% move from the prior day. This change lagged the S&P 500's 0.13% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Coming into today, shares of the cruise operator had lost 9.46% in the past month. In that same time, the Consumer Discretionary sector gained 7.82%, while the S&P 500 gained 5.55%.

Norwegian Cruise Line will be looking to display strength as it nears its next earnings release. On that day, Norwegian Cruise Line is projected to report earnings of -$0.82 per share, which would represent year-over-year growth of 57.51%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.26 billion, up 28827.62% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$2.17 per share and revenue of $5.39 billion, which would represent changes of +73.11% and +731.74%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Norwegian Cruise Line. Recent revisions tend to reflect the latest near-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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.94% lower. Norwegian Cruise Line is holding a Zacks Rank of #4 (Sell) right now.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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.

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

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