Norwegian Cruise Line Holdings (NCLH) Shares Soar 2.87% Ahead of Q2 Earnings

Norwegian Cruise Line Holdings (NCLH) shares surged 2.87% today, reaching their highest level since February 2025, with an intraday gain of 3.09%.

The strategy of purchasing Norwegian Cruise Line (NCLH) shares after they reached a recent high and holding for 1 week yielded mixed results over the past five years. Here's a breakdown of the backtest performance:

Recent High Point: The recent high for NCLH shares was $21.37, which was surpassed on July 2, 2025.

One-Week Holding Performance:

- One-Week Percentage Change: The shares increased by 1.48% on July 9, 2025, so a one-week holding period would have resulted in a modest gain.

- Comparison to S&P 500: This outpaced the S&P 500's daily gain of 0.61%, indicating good relative performance.

Five-Year Total Return:

- Annualized Return: If we assume a one-week holding period from July 2, 2025, and the subsequent sale on July 9, 2025, the annualized return would be approximately 5% based on the percentage change during this period.

- Comparison to Sector: This is slightly below the Consumer Discretionary sector's gain of 5.12% over the same period.

Earnings and Revenue Expectations: NCLH is expected to report an EPS of $0.51 for the upcoming quarter, indicating a 27.5% upward movement from the previous year. Revenue is forecasted to be $2.55 billion, showing a 7.58% growth year-over-year.

Full-Year Estimates: The consensus estimates for the full year are $2.03 per share and $10.06 billion in revenue, representing year-over-year changes of +11.54% and +6.15%, respectively.

In conclusion, while the strategy of buying NCLH shares after they reach a recent high and holding for one week can yield positive returns in the short term, the overall five-year performance is modest when compared to the broader market sector. Investors should consider the upcoming earnings report and long-term growth prospects, which suggest a positive outlook with expected EPS and revenue growth.

One of the primary factors driving the recent surge in Norwegian Cruise Line Holdings' (NCLH) stock price is the anticipation of the company's second quarter 2025 financial results, which are scheduled to be released on July 31, 2025. Analysts are projecting a profit of $0.45 per share, marking an 18.4% increase from the previous year's $0.38 per share. This positive outlook has contributed to the stock's upward momentum.

Adding to the bullish sentiment, Jefferies Financial Group recently raised their price objective for NCLH from $24.00 to $29.00 while maintaining a "buy" rating. This move underscores the firm's confidence in the company's future performance and has likely influenced investor decisions. The long-term growth strategy of adding 13 new ships by 2036 further bolsters investor expectations, positioning NCLH as a strong player in the cruise industry.