(VIANEWS) – Norwegian Cruise Line’s (NCLH) stock experienced an extraordinary surge of 33.28% growth over 21 sessions, starting from EUR13.07 on November 2 and reaching EUR17.42 by 23:27 EST Monday evening; five consecutive sessions saw gains. Meanwhile, NASDAQ markets as a whole dropped 1.27% while Norwegian Cruise Line closed at EUR16.42 which is 27.82% below its 52-week high of EUR22.75
About Norwegian Cruise Line
Norwegian Cruise Line Holdings Ltd. operates as one of the premier cruise companies worldwide, serving North America, Europe, Asia Pacific and other markets. Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises provide an extensive variety of itineraries ranging in duration from three days up to 180 days. Destinations options range from Scandinavia and Russia, through the Mediterranean and Greek Isles to Alaska, Canada and New England as well as Hawaii; Tahiti in South Pacific Asia (Australia/New Zealand/Taiwan/India/South America and Caribbean) is another hot spot. Products of this company are sold through retail/travel advisor and onboard cruise sales channels, in addition to meetings, incentives, and charters. Established in 1966 in Miami, Florida and with headquarters there, it has grown into one of the leading players in the cruise industry.
Yearly Analysis
Norwegian Cruise Line’s current share price of EUR17.42 demonstrates some significant variation from its 52-week high of EUR22.75 but remains significantly above its low of EUR11.76 over the past year, suggesting it has seen some degree of volatility.
This year, sales growth is anticipated at 76.3%; however, growth may moderate to 9.1% in 2019. This may suggest that its trajectory may have reached its limit.
Norwegian Cruise Line’s EBITDA stands at 2.5, suggesting it has generated some profit. However, EBITDA should not be seen as a comprehensive indicator of financial health; other metrics should also be taken into consideration.
Investors should also keep the wider market conditions and macroeconomic factors that may impact Norwegian Cruise Line in mind when making investment decisions. Furthermore, investors would do well to conduct further research on its finances, industry trends, management team as well as management team prior to making any definitive investments decisions.
Technical Analysis
Norwegian Cruise Line Holdings Ltd. (NCLH) has been trading below its key moving averages, suggesting a possible oversold condition. NCLH’s 50-day moving average stands at EUR14.70 while its 200-day moving average sits at EUR16.00; yet, NCLH reported volumes were 12967771 which exceeded its average volume by 12.96%.
The stochastic oscillator, an effective method for identifying overbought and oversold conditions, indicates that NCLH’s stock price is currently oversold (=20). This could signal a possible turnaround as oversold conditions usually result in price increases.
Investors should closely track NCLH’s performance over the coming days and weeks, as its recent oversold conditions could signal an opportunity to purchase. Before making any definitive investment decisions however, investors must carefully consider other factors like earnings reports, industry trends, global economic conditions etc. before taking action.
Key Takeaways
NCLH’s stock is currently oversold according to its stochastic oscillator. Additionally, last reported volume was above its average volume indicating potential buying opportunities in the days and weeks ahead.
Quarter Analysis
Norwegian Cruise Line is an established cruise company which has experienced impressive sales and revenue growth in recent years. Their sales growth for this quarter stands at 29.3%; their estimated growth rates for next quarter indicate this will likely continue.
Recent growth at the company has been remarkable, with quarterly year-on-year revenue increases of 57% year over year and twelve month trailing revenues reaching an all-time high of 8.08 billion, an astounding increase compared to earlier revenue levels.
Overall, Norwegian Cruise Line appears to be an attractive investment opportunity for investors seeking companies within the travel and leisure industry with proven revenue growth potential. Investors should take care in considering any associated risks with investing in this sector – these could include changes in travel restrictions as well as consumer confidence due to pandemic threats like COVID-19.
Equity Analysis
According to available data, Norwegian Cruise Line currently generates negative earnings per share (EPS), signifying that it is currently not profitable and needs time for profitability to return.
Return on equity (ROE) for the last twelve months has been negative -50.05%, which indicates that this company is failing to generate significant profits relative to shareholder’s equity, which should be seen as a red flag to investors.
At present, these financial metrics suggest that Norwegian Cruise Line may not be an attractive investment option for investors. Investors may wish to consider other companies with superior profitability and return on equity metrics before making their final investment decisions.
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