Here's Why Norwegian Cruise Line (NCLH) is a Strong Value Stock

Zacks
03 Apr

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Norwegian Cruise Line (NCLH)

Norwegian Cruise Line Holdings Ltd., a Bermuda Limited company, is a leading cruise line operator. It owns and operates three brands — Oceania Cruises, Regent Seven Seas Cruises and Norwegian Cruise Line. The company, founded in 1966, is headquartered in Miami, FL.

NCLH is a Zacks Rank #3 (Hold) stock, with a Value Style Score of A and VGM Score of A. Shares are currently trading at a forward P/E of 9.3X for the current fiscal year compared to the Leisure and Recreation Services industry's P/E of 18.5X. Additionally, NCLH has a PEG Ratio of 0.3 and a Price/Cash Flow ratio of 4.7X. Value investors should also note NCLH's Price/Sales ratio of 0.9X.

A company's earnings performance is important for value investors as well. For fiscal 2025, four analysts revised their earnings estimate higher in the last 60 days for NCLH, while the Zacks Consensus Estimate has increased $0.02 to $2.10 per share. NCLH also holds an average earnings surprise of 47.9%.

NCLH should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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