Should You Buy Norwegian Cruise Line Stock As It Plans To Resume Cruises?

Table Of Content

• Norwegian Cruise Line Holdings Reports Strong Fourth Quarter and Full Year 2023 Financial Results
• Stock Ratings Reports and Tools
• Norwegian Cruise Line Holdings to Hold Conference Call on Fourth Quarter and Full Year 2023 Financial Results
• What You Need to Know About Cruise Line Stocks
• Norwegian Cruise Line (NCLH) Q3 2023 Earnings Call Transcript
• Analysts’ Opinions Are Mixed on These Consumer Cyclical Stocks: Bright Horizons (BFAM) and Norwegian Cruise Line (NCLH)

Finally, State Street Corp grew its stake in Norwegian Cruise Line by 4.3% during the second quarter. State Street Corp now owns 14,087,436 shares of the company's stock worth $306,683,000 after buying an additional 583,581 shares in the last quarter. 69.58% of the stock is currently owned by institutional investors and hedge funds. 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 Cruise Line Holdings Reports Strong Fourth Quarter and Full Year 2023 Financial Results

One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Norwegian Cruise Line Holdings has a better ROE than the average (17%) in the Hospitality industry. Plus, with growing demand, the company just ordered eight new ships, which is the biggest order in company history. “We expect these strategic investments will secure our growth trajectory, significantly boost our earnings profile, and enhance shareholder value well into the future,” added Chief Financial Officer Mark Kempa. Cruise bookings are hitting record highs, creating big opportunity for some of the top cruise stocks to buy now.

Stock Ratings Reports and Tools

JPMorgan also raised its price target to $23 with an overweight rating. 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. Mizuho began coverage on shares of Norwegian Cruise Line in a research report on Tuesday, March 26th. They issued a "neutral" rating and a $21.00 price objective on the stock. Stifel Nicolaus reaffirmed a "buy" rating and set a $25.00 price target on shares of Norwegian Cruise Line in a research report on Tuesday, April 9th.

Norwegian Cruise Line Holdings to Hold Conference Call on Fourth Quarter and Full Year 2023 Financial Results

Better Cruise Stock Buy: Carnival or Norwegian? - The Motley Fool

Better Cruise Stock Buy: Carnival or Norwegian?.

Posted: Wed, 01 Feb 2023 08:00:00 GMT [source]

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. Revenue was ahead of guidance, whereas its net loss was a little more than expected. 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. Operating a successful cruise requires significant planning and resources, but these three companies have managed to take over 80% of the $30 billion market. Even though cruise line stocks are going through rough waters, there are reasons to be optimistic.

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Click the link to learn what streetwise investors need to know about the metaverse and public markets before making an investment. Enjoy up to 50% Off on Select Sailings in 2024 and 2025 MIAMI , Jan. 9, 2024 /PRNewswire/ -- Oceania Cruises , the world's leading culinary- and destination-focused cruise line, is ringing in the new ... Sailings explore destinations from Tokyo to Cape Town to Bali to Rio de Janeiro MIAMI , March 26, 2024 /PRNewswire/ -- Oceania Cruises, the world's leading culinary- and destination-focused cruise lin...

While Norwegian Cruise Line currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. 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. All of the cruise-ship companies incurred significant debt during the worst of the COVID-19 pandemic, including Norwegian.

Citigroup dropped their price target on shares of Norwegian Cruise Line from $23.00 to $19.00 and set a "neutral" rating on the stock in a research report on Monday, February 12th. Truist Financial upped their price target on shares of Norwegian Cruise Line from $17.00 to $20.00 and gave the stock a "hold" rating in a research report on Friday, March 1st. Finally, The Goldman Sachs Group began coverage on shares of Norwegian Cruise Line in a research report on Wednesday, March 13th. They set a "neutral" rating and a $19.00 price target on the stock. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature.

4 Reasons to be Bullish on Norwegian Cruise Line Stock - The Motley Fool

4 Reasons to be Bullish on Norwegian Cruise Line Stock.

Posted: Sun, 30 Apr 2023 07:00:00 GMT [source]

Norwegian Cruise Line (NCLH) Q3 2023 Earnings Call Transcript

“Bookings have been significantly higher than during the same period last year, with the back half of the year up by more than the front half,” the company added. 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. 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 .

Analysts’ Opinions Are Mixed on These Consumer Cyclical Stocks: Bright Horizons (BFAM) and Norwegian Cruise Line (NCLH)

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. Norwegian Cruise Line (NCLH) posted its fourth-quarter results revealing a quarterly loss of $0.18 per share.

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. 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.

The company also initiates construction of a multi-ship pier at Great Stirrup Cay, enhancing its Caribbean port infrastructure. On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. After a recent pullback to $14.33, I’d use weakness as an opportunity with Carnival. Not only is its sitting at double-bottom support dating back to late November, it’s technically over-extended on RSI, MACD, and Williams’ %R. From its current price, I’d like to see Carnival initially retest resistance at around $17.68.

Weakness in consumer spending spurred by an economic downturn could affect discretionary spending, leading pricing to soften and lower onboard spending. Please log in to your account or sign up in order to add this asset to your watchlist. Upgrade to MarketBeat All Access to add more stocks to your watchlist. Sign-up to receive the latest news and ratings for NCLH and its competitors with MarketBeat's FREE daily newsletter.