Is Norwegian Cruise Line Holdings Ltd NYSE:NCLH A High Quality Stock To Own?

Table Of Content

• Regent Seven Seas Cruises® Innovates Luxury Cruising With Unique Immersive Overnights Sailings
• Premium Investing Services
• Norwegian Cruise Line Shareholder
• Norwegian Cruise Line Holdings to Hold Conference Call on Fourth Quarter and Full Year 2023 Financial Results
• Business Surpasses Pre-Pandemic Levels

According to 15 analysts, the average rating for NCLH stock is "Hold." The 12-month stock price forecast is $20.07, which is an increase of 9.73% from the latest price. If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So I think it may be worth checking this free report on analyst forecasts for the company. Return on equity is useful for comparing the quality of different businesses.

Regent Seven Seas Cruises® Innovates Luxury Cruising With Unique Immersive Overnights Sailings

The end result is shaping up to be a more resilient industry than it was in its pre-pandemic prime. What analysts see Norwegian earning the next few years is pretty impressive. Norwegian Cruise Line posted mixed financial results earlier this month.

Premium Investing Services

International Assets Investment Management LLC Raises Position in Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) - MarketBeat

International Assets Investment Management LLC Raises Position in Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH).

Posted: Wed, 17 Apr 2024 08:51:38 GMT [source]

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 Company offers an array of cruise itineraries and theme cruises, as well as markets its services through various distribution channels including retail and travel agents, international and incentive sales, and consumer direct. Norwegian Cruise Line CEO Harry Sommer expressed that 2023 was a landmark year for the company.

Norwegian Cruise Line Shareholder

While Norwegian Cruise Line currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... If you buy and hold Norwegian Cruise Line stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you - at least if the company is otherwise strong. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days.

Onboard revenue per passenger cruise day rose 20% over 2019 in the quarter. Don't underestimate the power of cruise line stocks as they reverse the bearish narrative. Carnival, Royal Caribbean, and Norwegian had to do a lot of scary things to stay literally and figuratively afloat after the COVID-19 crisis decimated the business.

The new ship orders across all three brands are scheduled for delivery over a ten-year period, between 2026 and 2036. The strategy is expected to boost Norwegian Cruise’s product offering, guest experiences, and operational infrastructure. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. For the full year 2024, the company expects an adjusted profit of about $635 million, or $1.23 per share.

Norwegian Cruise Line reports first profitable year since 2019

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. The bottom line exceeded analyst targets, building on its return to profitability in the second quarter after more than three years of quarterly losses.

Norwegian has come through with a 22% stock increase in 2023, but Royal Caribbean shareholders have seen their shares more than double this year. The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank. For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. 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. “This strategic new-ship order across all three of our award-winning brands provides for the steady introduction of cutting-edge vessels into our fleet and solidifies our long-term growth,” said President and CEO Harry Sommer. The company also launched the construction of a multi-ship pier at Great Stirrup Cay, the company’s private island destination in the Bahamas and its Caribbean port of call.

Net yield is expected to rise 5.5% as reported and nearly 5.4% constant currency versus 2023. The company announced it had ordered 8 new cruise ships for its 3 brands to be delivered over 10 years. Norwegian narrowed losses in 2023 and expects profitability in 2024 driven by record bookings and strong pricing power. For Q4 2023, Norwegian reported an EPS loss of 18 cents vs 14 cents consensus analyst estimates. Net loss was $106.5 million versus $482.5 million in the year-ago period. Revenues surged 30.8% YoY to $1.986 billion, beating $1.960 billion consensus estimates.

The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation. Norwegian operates under three brands catering to all income levels. Its namesake, Norwegian Cruise Lines, offers freestyle cruising with no assigned dining or entertainment times and relaxed dress codes aboard its 19 ships. Its Oceania Cruises features seven smaller luxury ships specializing in culinary and destination-focused cruising with a 684 to 1,250 guest capacity. IF NCLH stock moved by -5% over 5 trading days, THEN over the next 21 trading days, NCLH stock moves an average of 4.5%, with a 62.8% probability of a positive return over this period.

These returns cover a period from January 1, 1988 through March 4, 2024. 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 future is bright for the cruise line industry in general and Norwegian Cruise Line in particular. The skies are a little cloudy right now, but things are brighter on the horizon. Big gains might come from the smallest of the country's three leading cruise line operators. It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 14.42; value investors should take notice.

Over time, we expect both pricing and costs to normalize at low-single-digit rates. Longer-term profitability also remains a concern, given potentially higher interest expenses. The company’s total debt rose to about $11.8 billion at the end of 2020, up from around $6.8 billion at the end of 2019. That said, the stock still remains down by about 50% from its pre-Covid highs, making the risk to reward proposition relatively attractive for investors. That said, the longer-term outlook for the company remains mixed, in our view. Booking trends have also been mixed, with reservations for the second half of 2021 apparently remaining below historical levels, although early trends for 2022 look strong, per the company.

Charting New Waters: Norwegian Cruise Line Unveils Ambitious Plans For Eight Ships - Markets Insider

Charting New Waters: Norwegian Cruise Line Unveils Ambitious Plans For Eight Ships.

Posted: Tue, 09 Apr 2024 07:00:00 GMT [source]

© 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.