Norwegian Cruise Lines: Stock Expected to Surge 20% – Forecast and Analysis
Consumer discretionary stocks had a great day on Monday, with investors eyeing the potential impact of lower interest rates. The yield on Ten Year Treasuries ($TNX) dipped, indicating that the Fed may cut rates before the end of 2024, which could benefit consumers in 2025. Positive news from the travel industry after the busiest travel weekend ever added to the optimism.
This favorable environment is particularly good news for the cruise line industry, including Norwegian Cruise Line (NCLH). In October, Norwegian Cruise Lines beat its earnings per share target by $0.05, driven by strong revenue growth that exceeded analyst expectations. Year-over-year revenue growth for Norwegian was an impressive 10.7% for the quarter.
Since this positive earnings report, NCLH shares have gained 20% and look poised for a new short-term bullish breakout. After trading in a range between $25 and $27.50 for the last month, Norwegian Cruise Lines shares are now making a move above their upper Bollinger Band. This technical indicator suggests the potential for fast and aggressive stock price movement.
A similar breakout in early November led to an 11% rally, pushing the stock to $27.50. Alongside this short-term bullish setup, Norwegian Cruise Lines maintains a positive long-term outlook, with a price target of $33. Investors seem optimistic about the company’s prospects.
