Yahoo Finance Is Now The Time To Look At Buying Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)?
Today we’re going to take a look at the well-established Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH). The company’s stock saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Let’s take a look at Norwegian Cruise Line Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists.
View our latest analysis for Norwegian Cruise Line Holdings
What’s the opportunity in Norwegian Cruise Line Holdings?
Good news, investors! Norwegian Cruise Line Holdings is still a bargain right now. According to my valuation, the intrinsic value for the stock is $72.09, but it is currently trading at US$47.67 on the share market, meaning that there is still an opportunity to buy now. However, given that Norwegian Cruise Line Holdings’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Can we expect growth from Norwegian Cruise Line Holdings?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Norwegian Cruise Line Holdings’s earnings over the next few years are expected to increase by 39%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since NCLH is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on NCLH for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NCLH. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Norwegian Cruise Line Holdings. You can find everything you need to know about Norwegian Cruise Line Holdings in the latest infographic research report. If you are no longer interested in Norwegian Cruise Line Holdings, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
