Norwegian Cruise Line Holdings Ltd. (NCLH), headquartered in Miami, Florida, provides cruise travel services. Valued at $8.7 billion by market cap, the company offers cruise itineraries and theme cruises, and markets its services through various distribution channels including retail and travel agents, international and incentive sales, and consumer direct.

Companies worth $2 billion or more are generally described as “mid-cap stocks,” and NCLH perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the travel services industry. NCLH’s significant revenue is driven by strong passenger ticket sales and onboard activities. The company is poised for further growth with 13 new vessels on order, increasing capacity by 41,000 berths through 2036. NCLH's robust liquidity position and prudent financial management enable it to invest in growth initiatives and navigate market fluctuations.

Despite its notable strength, NCLH slipped 35.1% from its 52-week high of $29.29, achieved on Jan. 31. Over the past three months, NCLH stock declined 7.1%, underperforming the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 3.5% gains during the same time frame. 

In the longer term, shares of NCLH dipped 26.1% on a YTD basis but climbed 4% over the past 52 weeks, underperforming XLY’s YTD 5% losses and 17.9% returns over the last year.

To confirm the bearish trend, NCLH has been trading below its 200-day moving average since early March. However, the stock is trading above its 50-day moving average since mid-May, with slight fluctuations.  

On Apr. 30, NCLH shares closed down more than 7% after reporting its Q1 results. Its adjusted EPS of $0.07 did not meet Wall Street expectations of $0.09. The company’s revenue was $2.1 billion, missing Wall Street forecasts of $2.2 billion. The company expects full-year adjusted EPS to be $2.05.

In the competitive arena of travel services, Royal Caribbean Cruises Ltd. (RCL) has taken the lead over NCLH, showing resilience with 23.3% gains on a YTD basis and 76.9% returns over the past 52 weeks.

Wall Street analysts are moderately bullish on NCLH’s prospects. The stock has a consensus “Moderate Buy” rating from the 22 analysts covering it, and the mean price target of $24.50 suggests a potential upside of 28.8% from current price levels.