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Valued at a market cap of $8.99 billion, Norwegian Cruise Line Holdings Ltd. (NCLH) operates as a cruise company and offers itineraries from three days to 180 days. The Miami, Florida-based company owns and operates three brands: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises.
Companies worth less than $10 billion are generally described as “mid-cap” stocks and Norwegian Cruise fits this criterion perfectly. The company is renowned for its innovative approach to cruising and for introducing the concept of Freestyle Cruising, which allows passengers the freedom to tailor their vacation experiences on their terms without the constraints of fixed dining times, entertainment schedules, or formal attire requirements.
Shares of NCLH are trading 5.7% below their 52-week high of $21.73, which they hit on Mar. 27. The travel service provider has gained 9.1% over the past three months, surpassing the broader S&P 500 Index’s ($SPX) 5.1% return over the same time frame.
However, in the longer term, NCLH stock is up 2.3% on a YTD basis, lagging behind SPX’s 20.3% gains. Moreover, shares of NCLH have gained 24.4% over the past 52 weeks, underperforming SPX’s 33.8% returns over the same time frame.
NCLH has been trading above its 200-day and 50-day moving averages since early September to confirm its bullish trend.
NCLH released its Q2 earnings report on Jul. 31. The company reported adjusted earnings of $0.40 per share, which surpassed Wall Street estimates of $0.34, and its revenue of $2.37 billion in the period matched the consensus estimates. Despite better-than-expected performance, shares of NCLH declined for four consecutive trading sessions after its Q2 earnings release. The company raised its full-year EPS guidance to $1.53 per share.
NCLH has lagged behind its rival Carnival Corporation’s (CCL) 31.2% gain over the past 52 weeks but has surpassed CCL’s 2.9% decline on a YTD basis.
Given that NCLH outperformed the broader market recently, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 17 analysts in coverage, and the mean price target of $22.92 suggests a 12.4% premium to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
