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Norwegian Cruise Line Estimates* in USD
On the cost side, while higher oil prices and unfavorable foreign exchange could elevate costs at times, we expect management will focus on extracting further efficiencies as the business continues to scale. Over time, we expect both pricing and costs to normalize at low-single-digit rates. 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. Norwegian has spent the better part of the last year raising funds via debt and equity issuances, with its debt load standing at about $11.8 billion at the end of Q4, up from about $6.8 billion a year ago. The higher interest costs are likely to weigh on the company’s profitability going forward.
Oceania Cruises Offers Free Pre-Cruise Hotel Stay on a Range of Sailings in 2024 and 2025
Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time. Now while cruising from the U.S. ports is set to resume this July, we still think that 2021 is likely to be a relatively slow year for Norwegian. Norwegian will likely miss out out on much of the lucrative summer cruising season and it’s also possible that older customers - who are a key demographic - will take a wait and watch approach to cruising post the pandemic. That said, 2022 is looking much stronger, with consensus estimates pointing to revenues of $6 billion, just slightly below the $6.5 billion in revenue the company posted in 2019.
Why Norwegian Cruise Line Stock Jumped on Tuesday
For example, you’ll be surprised how the stock valuation for Northrop Grumman vs. Atlas Air Worldwide Holdings shows a disconnect with their relative operational growth. There have been two largely positive developments for the recreational cruising space this month. Centers for Disease Control and Prevention said that fully vaccinated people can stop wearing masks and social distancing outdoors and in most indoor settings. Although the new guidelines don’t specifically refer to the cruising industry, they should give potential cruise customers some confidence that things are returning to normal. Moreover, Pfizer’s PFE Covid-19 vaccine received approval for use in children aged 12 to 15 in the U.S.
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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. Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company.
Norwegian Cruise Stock Soars After Earnings. Demand Hits Record Levels. - Barron's
Norwegian Cruise Stock Soars After Earnings. Demand Hits Record Levels..
Posted: Tue, 27 Feb 2024 08:00:00 GMT [source]
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. According to the issued ratings of 14 analysts in the last year, the consensus rating for Norwegian Cruise Line stock is Hold based on the current 1 sell rating, 9 hold ratings, 3 buy ratings and 1 strong buy rating for NCLH. The average twelve-month price prediction for Norwegian Cruise Line is $20.87 with a high price target of $32.00 and a low price target of $15.00. However, shareholder returns remain a concern in the longer-term for Norwegian stock.
Norwegian Cruise Line Stock Sees Relative Strength Rating Sails Higher - Investor's Business Daily
Norwegian Cruise Line Stock Sees Relative Strength Rating Sails Higher.
Posted: Thu, 21 Mar 2024 07:00:00 GMT [source]
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. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks. 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.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. 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.
Here's why Goldman Sachs just gave Carnival and Royal Caribbean stocks buy ratings
The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier. Try the Trefis machine learning engine above to see for yourself how Norwegian Cruise Line stock is likely to behave after any specific gain or loss over a period. Bear in mind, a high ROE doesn't always mean superior financial performance. A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk . Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.55 in profit. All of the cruise-ship companies incurred significant debt during the worst of the COVID-19 pandemic, including Norwegian.
But the business is otherwise performing quite well, which should be encouraging news for shareholders. Norwegian has lagged behind its competitors, although others are still posting losses as the industry battles higher fuel prices and interest rates. © 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.
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. Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
The company spent the better part of the last year raising funds, with its debt load roughly doubling to $12 billion between December 2020 and the end of March 2020. This should lead to higher interest costs, constraining the company’s long-term profitability. Moreover, shareholders have also been significantly diluted by the company’s equity issuances, with shares outstanding rising to 370 million as of April 2021, up from 213 million in early 2020. Ticket prices have also apparently been strong, trending above 2019 levels.
See our analysis on Norwegian Cruise Line Stock Chances Of Rise for more details on the stock’s recent performance and where it could be headed. We’d like to share more about how we work and what drives our day-to-day business. Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams.
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. Cruise stocks rallied in intraday trading Tuesday after a strong earnings report and forecast from Norwegian Cruise Line Holdings (NCLH). Norwegian Cruise Line (NCLH) rises on 4Q revenue and 1Q upbeat guidance. NCLH's incredibly strong results highlight the strength in its brand and the cruise industry, notes Ivan Feinseth. Norwegian Cruise Line shares fell more than 10% on Tuesday after the company posted wider losses than expected and offered soft guidance for the year, despite persistent travel demand. Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value.
This could also prove positive for the cruising business, as there could be some revival in demand from families. While Norwegian is likely to start cruises from the U.S. around early August, it says that it now plans to operate 23 of its 28 ships through early 2022. Moreover, the company said that it would begin cruising to Alaska from early August following the passage of the U.S. Alaska Tourism Restoration Act, which temporarily enables cruise ships to sail to Alaska, bypassing a legal requirement to make a stop at ports in Canada, which has banned cruses until 2022. Cruise companies had previously canceled their trips to Alaska, which is a popular summer cruising destination. Separately, the CDC also recently issued new guidelines easing mask-wearing requirements and social-distancing guidelines for fully vaccinated passengers on cruises.
Although Norwegian’s higher levels of leverage (debt has doubled to $12 billion from pre-pandemic levels) are a concern, the stock could still be worth a look considering that it remains down by about 45% from its 2019 levels. The cruise company reported fourth quarter losses of $1.04 per share, more than analysts' estimates of 85 cents. The expected return after a rise is understandably lower than after a drop as detailed in the previous question. Interestingly, though, if a stock has gained over the last few days, you would do better to avoid short-term bets for most stocks. 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. A number of equities research analysts have recently commented on the company.
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