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However, shareholder returns remain a concern in the longer-term for Norwegian stock. 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.
Making a Positive Impact
Carnival, Royal Caribbean, and Norwegian also made the most of the operating lull to refresh their operations and their offerings. 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.
Oceania Cruises Announces New 2025-2026 Tropics and Exotics Collection
Shares of NCLH stock traded up $0.12 during mid-day trading on Friday, hitting $18.29. The stock had a trading volume of 10,613,099 shares, compared to its average volume of 10,730,688. Norwegian Cruise Line Holdings Ltd. has a fifty-two week low of $12.41 and a fifty-two week high of $22.75. The firm has a market cap of $7.79 billion, a PE ratio of 65.32, a PEG ratio of 0.38 and a beta of 2.60. The company has a debt-to-equity ratio of 40.94, a current ratio of 0.22 and a quick ratio of 0.19. The company's 50-day simple moving average is $18.74 and its 200-day simple moving average is $17.32.
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]
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And because the trends are good, the company is guiding for better-than-expected financial results in the upcoming first quarter of 2024. These 10 simple stocks can help investors build long-term wealth as artificial intelligence continues to grow into the future. There are some legit reasons for Norwegian being a laggard among its fellow seafarers, but there's also a case to be made for it leading the way from here. The country's third-largest cruise ship operator can pop tenfold in the coming years if it catches the right waves along the way. With a historically smaller fleet, the company has been building new ships more aggressively versus peers in order to enter/serve certain markets.
The new ship orders across all three brands are scheduled for delivery over a ten-year period, between 2026 and 2036. 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. A Norwegian cruise ship has been denied permission to dock in Mauritius over fears of a potential cholera outbreak on board. From new ships to its private Caribbean island, get the latest details in this 1-minute breakdown of Norwegian Cruise Line (NCLH).
Why Norwegian Cruise Line Stock Jumped on Tuesday - The Motley Fool
Why Norwegian Cruise Line Stock Jumped on Tuesday.
Posted: Tue, 27 Feb 2024 08:00:00 GMT [source]
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. 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. NCLH sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Leisure and Recreation Services industry's P/E of 16X, shares of Norwegian Cruise Line are trading at a forward P/E of 14.4X. NCLH also has a PEG Ratio of 0.3, a Price/Cash Flow ratio of 7.3X, and a Price/Sales ratio of 0.9X. Gain deeper insights into company revenues with a detailed analysis of revenue sources.
However the stock is trading higher thanks to upbeat first-quarter guidance and a full-yea... This year's ‘wave season' will break revenue records for cruise lines, but investors are wary of the massive debts the industry took on during the pandemic. On its current trajectory, it will be able to meet its financial needs although it won't be without some dilution to shareholders. While Norwegian Cruise Line currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.
Harry Sommer, CEO of Norwegian Cruise Line, joins CNBC's 'The Exchange' to discuss Norwegian's new ship order, travel trends, and more. We’d like to share more about how we work and what drives our day-to-day business. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. In 2023, the company had net cash from operating activities of $2 billion and repaid $1.9 billion in debt. Specifically, Norwegian is calling for Q1 adjusted net income of $50 million, while Wall Street had expected an adjusted net loss.
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. This could give potential cruise customers confidence that cruising is a relatively safe activity post-vaccination. Norwegian Cruise Line Holdings Ltd. operates a fleet of passenger cruise ships.
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. But this stock is soaring today because of the positive prevailing trends in the business. The cruise line can carry more cruisers now than ever (higher capacity), has full occupancy, average ticket prices are up, and onboard spending is up, as well. A company's earnings performance is important for value investors as well.
For fiscal 2024, five analysts revised their earnings estimate higher in the last 60 days for NCLH, while the Zacks Consensus Estimate has increased $0.11 to $1.26 per share. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. 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. Also, given a -5% movement for the stock over 5 trading days, it has historically witnessed an excess return of 1.8% compared to the S&P500 over the next 21 trading days, with a 51.2% percent probability of a positive excess return. Now while cruise stocks have moved considerably over the last year, 2020 has also created many pricing discontinuities which can offer attractive trading opportunities. 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.
With ships fully deployed at historical occupancy levels, pricing surpassed prepandemic levels in 2023, and pricing momentum has persisted into 2024. While Norwegian could intermittently see pricing competition in periods of macroeconomic distress, we believe its freestyle offering and attractive itineraries will keep passengers engaged with the brand. 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. We believe that there is a decent 65% chance of a rise in Norwegian Cruise stock over the next month based on our machine learning analysis of trends in the stock price over the last nine years.
Two investment analysts have rated the stock with a sell rating, nine have given a hold rating, three have given a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, Norwegian Cruise Line has an average rating of "Hold" and a consensus target price of $20.87. Don't underestimate the power of cruise line stocks as they reverse the bearish narrative.
The strategy is expected to boost Norwegian Cruise’s product offering, guest experiences, and operational infrastructure. Set sail on an epic 180-day world journey across six continents visiting 43 countries, 101 ports and 81 UNESCO World Heritage sites MIAMI , March 5, 2024 /PRNewswire/ -- Opening up the world to a new ... Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams.
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