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Valued at a market cap of $11.3 billion, Norwegian Cruise Line Holdings Ltd. (NCLH) is a leading cruise line operator that owns and operates three brands: Oceania Cruises, Regent Seven Seas Cruises, and Norwegian Cruise Line. The Miami, Florida-based company offers itineraries ranging from three days to 180 days and offers a wide range of features, amenities, and activities.
Companies valued at less than $10 billion are typically classified as “mid-cap stocks,” and NCLH fits the label perfectly. The cruise company is known for its relaxed atmosphere, inventive "freestyle cruising" concept, and many onboard activities. It is the only company that offers race tracks at sea.
NCLH is currently trading 10.1% below its 52-week high of $28.64, reached on Dec. 2. Shares of this travel service provider have increased 25.6% over the past three months, significantly outperforming the broader Nasdaq Composite’s ($NASX) 7.1% gains during the same time frame.
Moreover, on a six-month basis, shares of NCLH are up 37%, massively surpassing NASX’s 9.9% gains. However, NCLH has gained 28.5% over the past 52 weeks, slightly underperforming NASX’s 29.8% returns over the same time frame.
To confirm its recent bearish trend, Norwegian Cruise Line has been trading below its 50-day moving average since late December. Nonetheless, it has remained above its 200-day moving average since early September.
On Oct. 31, shares of NCLH gained 6.3% after its strong Q3 earnings release. The company generated record revenues of $2.81 billion, which increased 10.6% year-over-year and exceeded the forecasted figure by 1.8%. The top-line growth was supported by strong demand, marked by a 6% year-over-year increase in advanced ticket sales. Improving consumer spending trends further favored NCLH. Moreover, the company’s effective cost-cutting measures led to a 30.3% annual growth in its adjusted EPS to $0.99, which surpassed the consensus estimates by 4.2%.
Noting its strong Q3 performance, the company raised its full-year 2024 Net Yield guidance to 9.4%, adjusted EBITDA forecast to $2.425 billion, and adjusted EPS guidance to $1.65.
NCLH has lagged behind its rival, Carnival Corporation & plc’s (CCL) 35.1% gain over the past 52 weeks but has outpaced CCL’s 33.8% increase on a six-month basis.
Looking at Norwegian Cruise Line’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 17 analysts covering it, and the mean price target of $29.89 suggests a 16.1% premium to its current levels.
