Norwegian Cruise Line (NCLH) shares ended the last trading session 18.3% higher at $18.39. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.2% loss over the past four weeks.
Following President Trump's announcement to suspend U.S. tariffs on most countries for 90 days, Norwegian Cruise shares soared, reflecting renewed investor optimism.
This cruise operator is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -43.8%. Revenues are expected to be $2.15 billion, down 2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Norwegian Cruise Line, the consensus EPS estimate for the quarter has been revised 1.1% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on NCLH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Norwegian Cruise Line belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Marriott Vacations Worldwide (VAC), closed the last trading session 16.6% higher at $59.28. Over the past month, VAC has returned -24.9%.
For Marriott Vacations Worldwide , the consensus EPS estimate for the upcoming report has changed -8.2% over the past month to $1.61. This represents a change of -10.6% from what the company reported a year ago. Marriott Vacations Worldwide currently has a Zacks Rank of #4 (Sell).
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Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
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