4 Positives For Norwegian Cruise Line

Summary:

• NCLH’s YTD returns might be underwhelming, but they not just obscure both shorter and longer-term price trends but also the price potential indicated by fundamentals.
• Healthy revenue growth in H1 2024, surpassing of profit guidance, and upgrade in the earnings guidance show that the company is on a good path.
• Its initiatives like capacity expansion, cost management, and debt reduction, along with improved market conditions can also hold it in good stead going forward.
• Further, a competitive forward P/E ratios to peers make NCLH a Buy.

Cruise operator Norwegian Cruise Line Holdings (NYSE:NCLH), has seen an underwhelming price trend year-to-date [YTD] (see chart below), especially compared with its industry peer Royal Caribbean Cruises (RCL), even as it’s better placed than the cruise biggie

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NCLH over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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