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Norwegian Cruise Line Holdings Ltd. (NCLH), headquartered in Miami, Florida, provides cruise travel services. Valued at $12.5 billion by market cap, the company offers cruise itineraries and theme cruises, and markets its services through various distribution channels including retail and travel agents, international and incentive sales, and consumer direct.
Shares of this leading cruise operator have outperformed the broader market considerably over the past year. NCLH has gained 64.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 23.3%. In 2025, NCLH stock is up 13%, surpassing the SPX’s 3.2% rise on a YTD basis.
Zooming in further, NCLH’s outperformance looks less pronounced compared to the Defiance Hotel, Airline, and Cruise ETF (CRUZ). The exchange-traded fund has gained about 32.3% over the past year. Moreover, NCLH’s gains on a YTD basis outshine the ETF’s 7.1% returns over the same time frame.
NCLH's "Charting the Course" plan has sparked investor optimism, driven by its strategic focus on enhancing guest experiences, boosting operational efficiency, and cultivating a strong company culture. The cruise industry's growing demand and NCLH's balanced approach to expense management and pricing power have contributed to its outperformance. Moreover, key growth drivers include a $150 million investment in a two-ship pier at Great Stirrup Cay, a 6% year-over-year increase in advanced ticket sales, and improving consumer spending trends.
On Oct. 31, NCLH shares closed up more than 6% after reporting its Q3 results. Its adjusted EPS of $0.99 topped Wall Street expectations of $0.95. The company’s revenue was $2.81 billion, exceeding Wall Street forecasts of $2.76 billion. NCLH expects full-year adjusted EPS to be $1.65.
For the current fiscal year, ended in December 2024, analysts expect NCLH’s EPS to grow 257.1% to $1.50 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 17 analysts covering NCLH stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, six “Holds,” and one “Strong Sell.”
This configuration is more bullish than two months ago, with eight analysts suggesting a “Strong Buy.”
On Jan. 23, The Goldman Sachs Group, Inc. (GS) analyst Lizzie Dove kept a “Buy” rating on NCLH and lowered its price target to $34, implying a potential upside of 17% from current levels.
The mean price target of $30.17 represents a premium of 3.8% to NCLH’s current price levels. The Street-high price target of $36 suggests an upside potential of 23.8%.
