Table Of Content
Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations.
Financial Calendars
There's a reason Royal Caribbean's new mega-cruise ship is only operating seven-night sailings. Over the last two years, Norwegian Cruise Line's demanding reinvestments to stay relevant with consumers have drained company resources. Its free cash flow margin has been among the worst in the consumer discretionary sector, averaging negative 17.3%. This quarter, Norwegian Cruise Line reported wonderful year-on-year revenue growth of 30.8%, and its $1.99 billion of revenue exceeded Wall Street's estimates by 1.2%. Looking ahead, Wall Street expects sales to grow 8.4% over the next 12 months, a deceleration from this quarter. Stifel analyst Steven Wieczynski reiterated a Buy rating on the shares with a price target of $25.
Norwegian Cruise Line Holdings LtdNCLH:US
On its current trajectory, it will be able to meet its financial needs although it won't be without some dilution to shareholders. Some of its debt will convert to shares because of how it was arranged. Specifically, Norwegian is calling for Q1 adjusted net income of $50 million, while Wall Street had expected an adjusted net loss. For the year, the company is expecting earnings before interest, taxes, depreciation, and amortization (EBITDA) of $2.2 billion, a strong 18% increase from 2023.
Oceania Cruises Announces 2026 Around the World Voyage Aboard Its Newest Ship, Vista
Those are the big-picture trends that are meaningful to Norwegian's business. And because the trends are good, the company is guiding for better-than-expected financial results in the upcoming first quarter of 2024. NCLH now has 13 ships on order over the next 12 years for a combined 41,000 berths, representing about 65% capacity growth, noted the analyst. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.55 in profit. According to analysts, Norwegian Cruise Line's stock has a predicted upside of 13.81% based on their 12-month stock forecasts.
Cruise Stocks Rally After Norwegian Posts First Profitable Year Since 2019
“Throughout the year, we successfully implemented measures to rightsize our cost base. Use these ten stocks to generate a safe and reliable source of investment income. This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio. Finally, Regent Seven Seas Cruises is scheduled to take delivery of two 77,000-gross-ton ships, each with a capacity of 850 guests, in 2026 and 2029.
Financial Strength
Norwegian Cruise Line reports first profitable year since 2019 - CNBC
Norwegian Cruise Line reports first profitable year since 2019.
Posted: Tue, 27 Feb 2024 08:00:00 GMT [source]
The good news is that revenue clocked in at a record $2.536 billion, in line with expectations and a 57% surge over the prior year's admittedly depressed results. More importantly, its top-line showing was 33% ahead of where it was during the same seasonally potent summertime quarter in 2019. In other words, it's now ahead of where it was before the pandemic shut the industry down for a painfully prolonged period.
Investor Services
Kentucky Retirement Systems Insurance Trust Fund raised its stake in Norwegian Cruise Line by 5.5% during the 3rd quarter. Kentucky Retirement Systems Insurance Trust Fund now owns 15,101 shares of the company's stock valued at $172,000 after acquiring an additional 782 shares in the last quarter. Finally, Wealth Management Partners LLC raised its stake in Norwegian Cruise Line by 5.1% during the 3rd quarter. Wealth Management Partners LLC now owns 16,600 shares of the company's stock valued at $274,000 after acquiring an additional 800 shares in the last quarter. Momentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook.
About MarketBeat
With a historically smaller fleet, the company has been building new ships more aggressively versus peers in order to enter/serve certain markets. A Norwegian cruise ship has been denied permission to dock in Mauritius over fears of a potential cholera outbreak on board. Weakness in consumer spending spurred by an economic downturn could affect discretionary spending, leading pricing to soften and lower onboard spending. Bear in mind, a high ROE doesn't always mean superior financial performance.
In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. Norwegian Cruise Line Holdings Ltd. operates a fleet of passenger cruise ships. The bad news that kept the stock down was its uninspiring guidance. With geopolitical events weighing on near-term sailings, its projected occupancy percentage for the current quarter is well shy of where it was in the holiday quarter of 2019.
If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible. Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks. Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
They issued a "neutral" rating and a $21.00 target price for the company. Citigroup lowered their target price on Norwegian Cruise Line from $23.00 to $19.00 and set a "neutral" rating for the company in a research note on Monday, February 12th. Wells Fargo & Company restated an "equal weight" rating and set a $18.00 price objective on shares of Norwegian Cruise Line in a research note on Friday, January 5th.
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