Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is among the Top 15 Lowest P/E Ratios of the S&P 500 in 2025. On December 2, Truist Securities slashed its price target on the stock to $26 from $31, while maintaining a Buy rating. Is Norwegian Cruise Line Holdings Ltd. (NCLH) the Lowest P/E Ratio Stock of the S&P 500 in 2025? According to TipRanks’ report, the adjustment came as part of the firm’s overall analysis of the cruise line industry. Truist met with leadership from several travel companies and re ...

Core Insights - Royal Caribbean Cruises Ltd. (RCL) is valued at a market cap of $72.5 billion and operates 67 ships across its brands, including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises [1] - The company has experienced a significant decline in share price, down 27.9% from its 52-week high of $366.50, and has underperformed the Dow Jones Industrials Average over the past three months [2] - Despite a year-to-date increase of 15.2% in stock price, RCL has been trading below its 50-day moving average since mid-September [3] Financial Performance - RCL reported Q3 2025 adjusted EPS of $5.75, which was better than expected, but revenue of $5.14 billion fell short of forecasts, leading to an 8.5% drop in shares [4] - Rising costs were noted, with NCC ex-fuel up 4.8% and Gross Cruise Costs per APCD up 2.7%, alongside challenges from adverse weather and the extended closure of Labadee [4] - The company provided a softer Q4 guidance of $2.74 to $2.79 in adjusted EPS [4] Market Comparison - In comparison, rival Airbnb, Inc. (ABNB) has underperformed relative to RCL, with ABNB stock down 8.6% year-to-date and 12.6% over the past 52 weeks [5] - Analysts maintain a cautiously optimistic outlook for RCL, with a consensus rating of "Moderate Buy" and a mean price target of $335.92, indicating a potential upside of 26.4% from current levels [5]

Core Insights - Norwegian Cruise Line Holdings Ltd. (NCLH) is identified as one of the 13 most undervalued stocks under $20 to buy [1] - Morgan Stanley analyst Stephen Grambling has reduced the price target for NCLH from $27 to $25 while maintaining an Equal Weight rating [2] Financial Performance - NCLH reported a record quarterly revenue of $2.94 billion, which is a 4.7% increase from the previous year, but it fell short of the estimated $3.02 billion due to a decline in air program participation [3] - The company's earnings per share (EPS) was $1.20, exceeding estimates by 4 cents and guidance by 6 cents; however, the profit forecast for Q4 is $0.27 per share, below the analysts' expectation of $0.30 due to soft demand for cruise vacations and cost pressures [4] Market Reactions - Following the earnings call, NCLH's stock has declined by over 14%, with investor concerns regarding a decrease in ticketing revenue amid a focus on family-oriented offerings [4] - Morgan Stanley has also reduced its EBITDA forecasts by approximately 1% for the fiscal years 2025 to 2027, indicating ongoing debates about the pricing power of cruise operators [5] Company Overview - Norwegian Cruise Line Holdings Ltd. operates a global cruise business with itineraries to over 700 destinations, managing a fleet of 32 ships and over 66,500 berths under the brands Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises [6]

Core Insights - Teacher Retirement System of Texas increased its stake in Norwegian Cruise Line Holdings Ltd. by 4.7% in Q2, owning 67,300 shares valued at $1,365,000 [1] - Several hedge funds have significantly increased their stakes in Norwegian Cruise Line, with Principal Financial Group Inc. raising its stake by 67.6% to 1,347,029 shares valued at $25,540,000 [2] - Analyst ratings for Norwegian Cruise Line show a consensus rating of "Moderate Buy" with an average price target of $28.74, reflecting positive sentiment among analysts [3] Institutional Holdings - Institutional investors and hedge funds collectively own 69.58% of Norwegian Cruise Line's stock, indicating strong institutional interest [2] Stock Performance - Norwegian Cruise Line's stock opened at $18.62, with a one-year low of $14.21 and a high of $29.29, and a market capitalization of $8.42 billion [4] - The stock has a PE ratio of 12.84 and a beta of 2.21, suggesting moderate volatility compared to the market [4] Earnings Results - Norwegian Cruise Line reported an EPS of $1.20 for the last quarter, exceeding the consensus estimate of $1.17, with a net margin of 7.52% and a return on equity of 59.88% [5] - The company generated revenue of $2.94 billion, slightly below analysts' expectations of $3.03 billion [5] - Guidance for Q4 2025 is set at 0.270 EPS, with FY 2025 guidance at 2.100 EPS [5] Company Overview - Norwegian Cruise Line operates as a cruise company with brands including Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises, offering itineraries globally [6]

Core Insights - Norwegian Cruise Line Holdings Ltd. (NCLH) is valued at $10.4 billion and operates a fleet of 34 ships across three brands, serving approximately 700 destinations worldwide [1] Financial Performance - Analysts expect NCLH to report a fiscal third-quarter profit of $1.10 per share, a 13.4% increase from $0.97 per share in the same quarter last year [2] - For the current year, NCLH's EPS is projected to be $1.87, reflecting a 14% increase from $1.64 in fiscal 2024, with further growth expected to $2.37 in fiscal 2026, a 26.7% year-over-year rise [3] Stock Performance - Over the past year, NCLH shares have increased by 1.7%, underperforming the S&P 500's 13.4% gains and the Consumer Discretionary Select Sector SPDR Fund's 18.7% gains [4] - On October 9, NCLH shares fell by 1.7% after Morgan Stanley analyst reiterated a "Hold" rating with a price target of $27 [5] - The consensus opinion among analysts is a "Moderate Buy," with 15 out of 22 analysts recommending a "Strong Buy" and an average price target of $30.57, indicating a potential upside of 28.7% from current levels [5]

Core Insights - Norwegian Cruise Line Holdings Ltd. (NCLH) is valued at a market cap of $11.4 billion and operates itineraries to over 700 destinations globally [1] - The company is classified as a large-cap stock, benefiting from a diverse three-brand portfolio that caters to mass-market, premium, and luxury travelers [2] - NCLH has a modern, fuel-efficient fleet and strong brand recognition, contributing to its expanding global presence [2] Financial Performance - NCLH's shares are currently trading 13.9% below their 52-week high of $29.29, but have rallied 30.1% over the past three months, outperforming the Invesco Dynamic Leisure and Entertainment ETF's 10.2% return [3] - Over the past 52 weeks, NCLH has gained 20.4%, lagging behind the ETF's 28.4% increase, and is down 1.9% year-to-date compared to the ETF's 17.6% rise [4] - The company reported Q2 results with a revenue growth of 6.1% year-over-year to $2.5 billion, missing consensus estimates by 1.6%, while adjusted EPS of $0.51 improved 30.8% but fell short of Wall Street forecasts [5] Market Outlook - Despite weaker-than-expected Q2 results, NCLH's shares surged 9.2% post-release as management reaffirmed its fiscal 2025 guidance, indicating confidence in future performance [5] - The company reiterated its adjusted EPS guidance of $2.05 for fiscal 2025, representing a nearly 16% increase over 2024, which reassured investors [5]

Core Insights - The company reported record total revenue of $2.5 billion for the second quarter of 2025, a 6% increase compared to the same period in 2024, and reaffirmed its full-year guidance for 2025 [6][7][9] - Strong consumer demand has led to bookings exceeding historical levels, with a notable increase in onboard spending [3][9] - The company is expanding its private island destination, Great Stirrup Cay, with the addition of a new waterpark and other amenities expected to enhance guest experience [3][6][34] Financial Performance - GAAP net income for the second quarter was $30 million, with earnings per share (EPS) of $0.07, reflecting a decline of $133.4 million year-over-year [6][7] - Adjusted EBITDA reached $694 million, an 18% increase from $588 million in 2024, exceeding guidance of $670 million [8][14] - Adjusted EPS was $0.51, in line with guidance, despite a negative impact of $0.08 from foreign exchange losses [8][14] Operational Metrics - Gross margin per Capacity Day increased by 11% on an as-reported basis and 12% on a Constant Currency basis [7] - Net Yield increased approximately 2.7% on an as-reported basis, surpassing the guidance of around 2.5% [7][14] - Occupancy for the second quarter was 103.9%, consistent with guidance, and the advance ticket sales balance reached a record high of $4 billion [9][10] Liquidity and Debt Management - The company successfully upsized its senior secured Revolving Loan Facility from $1.7 billion to approximately $2.5 billion, enhancing its liquidity position [6][12] - Total debt stood at $13.8 billion, with Net Leverage decreasing to 5.3x, down from 5.7x in the previous quarter [10][12] - Liquidity at quarter-end was $2.4 billion, including $184 million in cash and cash equivalents [11][12] Future Outlook - The company reiterated its full-year 2025 guidance, expecting a 2.5% increase in Net Yield and a 0.6% growth in Adjusted Net Cruise Cost excluding Fuel per Capacity Day [14][16] - Full-year Adjusted EBITDA is projected to be approximately $2.72 billion, reflecting an 11% increase compared to 2024 [14][16] - The company remains committed to achieving its 2026 financial targets, including reducing Net Leverage to the mid-4x range [12][14]