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Xerox Holdings Corporation (XRX) Shareholder/Analyst Call Prepared Remarks Transcript

PRAGUE--(BUSINESS WIRE)--STARTEEPO Invest (“STARTEEPO”), an alternative investment fund focused on public equity opportunities, today announced that it has increased its beneficial ownership position in Xerox Holdings Corporation (“Xerox” or the “Company”) to more than 6% of the Company's outstanding common stock, as disclosed in an amended Schedule 13D filing with the U.S. Securities and Exchange Commission. Following the transaction, STARTEEPO beneficially owns approximately 8.0 million Xerox.

Mexico's Environment Minister Alicia ​Barcena said on Tuesday ‌that Royal Caribbean's "Perfect Day" project in the state of ​Quintana Roo "is not going ​to be approved."

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Royal Caribbean (RCL - Free Report) .

Royal Caribbean currently has an average brokerage recommendation (ABR) of 1.65, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 26 brokerage firms. An ABR of 1.65 approximates between Strong Buy and Buy.

Of the 26 recommendations that derive the current ABR, 18 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 69.2% and 3.9% of all recommendations.

Brokerage Recommendation Trends for RCL

Check price target & stock forecast for Royal Caribbean here>>>

The ABR suggests buying Royal Caribbean, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is RCL a Good Investment?In terms of earnings estimate revisions for Royal Caribbean, the Zacks Consensus Estimate for the current year has declined 0.4% over the past month to $17.27.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Royal Caribbean. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Royal Caribbean with a grain of salt.

Cruise company ​Royal Caribbean decided ‌to withdraw a large water ​park project ​it planned on Mexico's ⁠Caribbean coast ​following Mexican authorities' ​rejection of the project, President Claudia ​Sheinbaum said ​on Wednesday.

Royal Caribbean (RCL) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.

The comprehensive program supporting local entrepreneurs culminated in a pitch competition spotlighting local innovation and economic growth

, /PRNewswire/ -- Royal Caribbean Group (NYSE: RCL), a global vacation leader, today announced Exit Glacier Greenhouses, pioneered by Sydney Singer, as the recipient of its inaugural Port Partners Small Business Accelerator Award, recognizing the company's potential to drive economic growth, create local opportunity, and contribute to the long-term vitality of the Seward community.

Exit Glacier Greenhouses aims to provide Seward, Alaska with year-round produce and deliver premium quality freshness and taste, grown with the lowest environmental impact. In a state where more than 95% of food is imported, the need to develop resilient, eco-friendly infrastructure to ensure community food security is critical. With the $20,000 grant, Singer plans to begin development of six pre-designed, crop-specific greenhouse modules with solar powering. Upgraded infrastructure will expand production from 2026's anticipated 700 pounds of seasonal production to 4,000 pounds of food within a year.

From left to right: Greg Haas, instructor, Alaska Vocational Technical Center; Sydney Singer, founder, Exit Glacier Greenhouse; Preston Carnahan, vice president, Destination Development, Alaska, West Coast, and Pacific; Dr. Cory Ortiz, division director, Alaska Vocational Technical Center. "I look forward to growing my business to ensure that all 2,900 Seward residents can have access to much-needed fruits and vegetables for a healthy diet, made possible through the Port Partners grant," said Sydney Singer, founder of Exit Glacier Greenhouses. "The critical business skills and connections with fellow business owners and mentors I have gained through the program have been invaluable, and I am grateful for the joyful opportunity this has brought to me, my cohort participants, and our community."  

The announcement follows the conclusion of the 2026 Port Partners Small Business Accelerator program in Seward, a multi-month initiative designed to help local entrepreneurs strengthen their businesses through education, mentorship, networking opportunities, and access to funding. Part of Royal Caribbean Group's broader SEA the Future platform, dedicated to Sustaining the Planet, Energizing Communities, and Accelerating Innovation, the program was supported by key partners including Alaska Vocational Technical Center (AVTEC), University of Alaska, Alaska Small Business Development Center, Seward Chamber of Commerce, and City of Seward.

"At Royal Caribbean Group, we believe strong communities are essential to delivering memorable vacation experiences," said Preston Carnahan, vice president, Destination Development, Alaska, West Coast, and Pacific, Royal Caribbean Group. "The Port Partners program is about investing in local entrepreneurs who are creating opportunities, supporting economic resilience, and helping communities thrive. We congratulate Exit Glacier Greenhouses on this well-deserved recognition and look forward to supporting their continued growth."

Exit Glacier Greenhouses receives $20,000 in funding, college credits, ongoing mentorship from business leaders, and increased exposure through the Port Partners network to help accelerate progress and expand their impact in the region.

This year's program brought together 15 participants from across South Central Alaska for a series of workshops and coaching sessions focused on business planning, financial management, marketing, community engagement, and sustainable growth strategies. Participants were paired with experienced, local entrepreneurs and industry professionals who provided guidance throughout the program. Graduating participants received three credits from the University of Alaska system and had the opportunity to pitch their business plan to a group of community leader judges at a live community event.

To spotlight Seward's current and future small business pipeline, the celebration was catered by Primrose Provisions, Flamingo Lounge, Firebrand BBQ, Alaska Culinary Experience, and Stoney Creek Brewhouse, with decorations by Lift'd Gifts, and music from Blackwater Railroad.

For more information about Port Partners and future initiatives, visit PortPartners.com.

See how Royal Caribbean Group is energizing communities around the world in our mission to vacation responsibly with the SEA The Future program.

Follow the Port Partners journey on Royal Caribbean Group's social channels.

LinkedIn: Royal Caribbean Group

Facebook: Royal Caribbean Group

X/Twitter: @RoyalCaribbeanGroup

About Royal Caribbean Group

Royal Caribbean Group is a leading global vacation company spanning cruise, one-of-a-kind destinations, and land-based vacation experiences. The company operates 69 ships sailing to more than 1,000 destinations across all seven continents through its three wholly owned brands - Royal Caribbean, Celebrity Cruises, and Silversea - and a 50% joint venture interest in TUI Cruises, which operates the Mein Schiff and Hapag-Lloyd brands.

The Group is expanding its portfolio of private destinations through its Perfect Day and Royal Beach Club collections, and the company will enter river cruising in 2027 with Celebrity River Cruises. Powered by innovative brands, advanced technology, and an industry-leading loyalty program, the company has built a connected vacation ecosystem, turning the vacation of a lifetime into a lifetime of vacations.

Named to the Fortune World's Most Admired Companies 2026 list and to Forbes' 2026 Best American Companies lists, Royal Caribbean Group is guided by its mission to deliver the best vacations responsibly. For more information, visit royalcaribbeangroup.com.

SOURCE Royal Caribbean Group

The Dale R. and Carol Ann Lindsey Alaska Railroad Terminal is a state-of-the-art facility that provides a seamless gateway to Alaska for guests around the world

, /PRNewswire/ -- Royal Caribbean Group (NYSE: RCL), a global vacation leader, recently commemorated the opening of the Dale R. and Carol Ann Lindsey Alaska Railroad Terminal with partners Alaska Railroad, The Seward Company, Turnagain Marine Construction at an official ribbon cutting ceremony including Alaska dignitaries Representative Louise Stutes of Kodiak and Seward, 5th District; Representative Alyse Galvin of Anchorage, 14th District; Alaska Department of Commerce, Community and Economic Development Commissioner Julie Sande; and Seward Mayor Sue McClure.

"We're thrilled to celebrate the culmination of nearly a decade of efforts to unlock this world-class travel destination, bringing long-term economic opportunities to Seward and beyond," said Josh Carroll, senior vice president, Deployment, Destination Development and Port Operations. "The journey to open the Dale R. and Carol Ann Lindsey Alaska Railroad Terminal as a portal to premier travel destinations would not have been possible without our supporting partners, government official stakeholders, and the local community."

The new terminal replaces aging dock facilities that date to the mid-1960s, positioning Seward as a premier cruise turn port.

"We know how important the terminal is not just to Seward, but to communities across Southcentral and Interior Alaska as these cross-gulf cruise guests take the opportunity to explore Alaska by land as well," said Bill O'Leary, President and CEO of the Alaska Railroad, the longtime owner and operator of the Seward passenger dock and terminal. "We were delighted to have the Lindsey family join us for the ribbon cutting to honor Dale and Carol Ann's many contributions to Seward and our state, and to celebrate an important milestone for this project."

As the largest cruise terminal in Alaska, this state‑of‑the‑art facility is designed to elevate guest experiences by prioritizing optimized passenger flows, sheltered queuing, and efficient passenger processing. The facility's direct adjacency to the Alaska Railroad station opens convenient onward travel to Anchorage, Fairbanks, and the broader communities of Alaska. The terminal is divided into 41,500 square feet of enclosed space and 27,000 square feet of open, pass-through luggage transfer layout.

The modernization of the pier includes a shore power system, developed through the US Environmental Protection Agency's Clean Ports Grant, resulting in cleaner air and reduced noise. With this alternative energy capability, any excess power generated during winter months will be stored in battery systems, serving as a backup power grid for Seward during unpredictable winter weather.

Built for year-round operations, the terminal serves as the community's largest indoor space, enabling ongoing recreational sports, concerts, festivals, and community gatherings, amidst winter weather conditions in the cruise off-season. The space was inaugurated for that exact purpose when Royal Caribbean Group invited the entire Seward community to help celebrate the culmination of their Port Partners small business accelerator program where standout business Exit Glacier Greenhouses received a $20,000 grant to help scale operations, representing the company's longstanding commitment to economic development in coastal communities.

See how Royal Caribbean Group is energizing communities around the world in our mission to vacation responsibly with the SEA The Future program.

Follow Royal Caribbean Group on social media:

LinkedIn: Royal Caribbean Group

Facebook: Royal Caribbean Group

X/Twitter: @RoyalCaribbeanGroup

ROYAL CARIBBEAN GROUP

Royal Caribbean Group is a leading global vacation company spanning cruise, one-of-a-kind destinations, and land-based vacation experiences. The company operates 70 ships sailing to more than 1,000 destinations across all seven continents through its three wholly owned brands - Royal Caribbean, Celebrity Cruises, and Silversea - and a 50% joint venture interest in TUI Cruises, which operates the Mein Schiff and Hapag-Lloyd brands.

The Group is expanding its portfolio of private destinations through its Perfect Day and Royal Beach Club collections, and the company will enter river cruising in 2027 with Celebrity River Cruises. Powered by innovative brands, advanced technology, and an industry-leading loyalty program, the company has built a connected vacation ecosystem, turning the vacation of a lifetime into a lifetime of vacations.

Named to the Fortune World's Most Admired Companies 2026 list and to Forbes' 2026 Best American Companies lists, Royal Caribbean Group is guided by its mission to deliver the best vacations responsibly. For more information, visit royalcaribbeangroup.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/royal-caribbean-group-and-alaska-railroad-company-celebrate-official-opening-of-cruise-terminal-in-seward-alaska-302796837.html

SOURCE Royal Caribbean Group

The latest trading day saw Royal Caribbean (RCL) settling at $268.58, representing a -4.85% change from its previous close.

Two Series of Sailings Combining Global Destination Exploration, Residential Luxury and The Finest Cuisine at Sea® for the Festive Seasons

, /PRNewswire/ -- Celebrate the holiday season at sea with Oceania Cruises® aboard its luxurious ships across Europe, Asia, Australia and the Americas during the 2026-27 and 2027-28 seasons.

Oceania Cruises Holiday Voyages With voyages ranging from one week to nearly 40 days, the line's intimate ships offer the ultimate way to relax and unwind while celebrating the season. Guests will enjoy live holiday music and performances, specialty festive cuisine, Champagne toasts to celebrate Christmas and welcome the New Year, and nightly menorah lightings throughout Hanukkah in the inviting ambiance of Oceania Cruises' elegant seasonal decor.

The choice of holiday voyages spans nearly the entire fleet, from the intimate Oceania Insignia™ to the newly launched Oceania Allura™ during the 2026–27 season. The following year introduces holiday sailings aboard Oceania Sonata™ and Oceania Aurelia™, both set to debut in 2027.

Itineraries include some of the world's most compelling destinations – from sun-drenched Caribbean islands and the biodiverse coastlines of Peru and Chile to cultural capitals including Bangkok and Rome, and the dramatic natural landscapes of destinations like Vietnam and New Zealand. Each voyage reflects the blend of cultural exploration and gourmet excellence that defines Oceania Cruises, the world's leading culinary- and destination-focused luxury cruise line.

Select itineraries include overnight stays in ports such as Barcelona, Bali and Singapore for more in-depth exploration, as well as scenic cruising experiences through the Panama Canal or New Zealand's Milford Sound.

"Our holiday voyages are designed to combine the traditions of the festive season with the excitement of global exploration," said Jason Montague, Chief Luxury Officer of Oceania Cruises. "Whether guests are toasting the New Year in a vibrant city or spending Christmas Day in a remote tropical paradise, these sailings offer a rare opportunity to celebrate in extraordinary surroundings, all while enjoying the exceptional cuisine, service and warm elegance that define Oceania Cruises."

Oceania Cruises offers travelers a distinctive way to mark the holiday season, through imaginative itineraries and onboard enrichment programs, designed to deepen guests' connections to the destinations visited.

On many sailings, guests can dive deeper into local cultures through hands-on cooking classes inspired by regional cuisines at The Culinary Center, or venture ashore on a chef-led Culinary Discovery Tour for insider access to local food scenes. Alternatively, travelers may choose to explore ancient archaeological sites or natural wonders on small group tours or wander local markets in search of meaningful mementoes while sampling new favorite dishes and drinks.

Highlighted 2026–27 Holiday Voyages

The 2026-27 series features a wide range of itineraries, from warm-weather Caribbean sailings to destination-rich journeys through Asia and South America:

Australasian Allure: Sydney to Perth: 23 days aboard Oceania Riviera™, departing Dec. 15, 2026
An expansive voyage through Australia and Indonesia, including an overnight stay in Darwin over Christmas Eve and another in Bali. Caribbean to Cape Horn: Miami to Buenos Aires: 36 days aboard Oceania Insignia, departing Dec. 19, 2026
A sweeping South America journey featuring a Panama Canal transit, multiple days in Peru with access to Machu Picchu and scenic cruising through the Chilean fjords. Legends of Jade: Hong Kong to Singapore: 15 days aboard Oceania Nautica™, departing Dec. 21, 2026
A Southeast Asia itinerary with overnights in Hue and Singapore and calls across Vietnam, the Philippines, Malaysia and Brunei. Iberia & Italian Treasures: Lisbon to Rome: 14 days aboard Oceania Sirena™, departing Dec. 21, 2026
A Mediterranean journey with an overnight stay in Barcelona over New Year's Eve, alongside calls in Spain, Portugal and the French Riviera, concluding with an overnight stay in Rome. Tropical Serenade: Miami to Miami: 17 days aboard Oceania Allura, departing Dec. 21, 2026
A Caribbean voyage featuring a mix of both Eastern and Western Caribbean destinations, including the islands of St. Barts, St. Kitts and St. Maarten. Highlighted 2027-28 Holiday Voyages

Guests can celebrate the 2027-28 holiday season aboard Oceania Sonata and Oceania Aurelia, both set to debut in 2027.

Holiday Harbors & Hollywood: Miami to Los Angeles: 29 days aboard Oceania Sonata, departing Dec. 6, 2027
A transcontinental journey featuring a Panama Canal transit, Christmas at sea and New Year's Eve along Mexico's Pacific coast. Heavenly Holidays: Athens to Rome: 26 days aboard Oceania Allura, departing Dec. 8, 2027
A Mediterranean exploration spanning Greece, Turkey, Spain and North Africa, including Christmas in Morocco. European Holiday: Athens to Barcelona: 10 days aboard Oceania Aurelia, departing Dec. 18, 2027
A festive Mediterranean sailing through Greece, Malta, Italy, France and Spain, including Christmas at sea and calls in Florence, Rome and Barcelona. Holiday Horizons: Miami to Miami: 17 days aboard Oceania Marina™, departing Dec. 20, 2027
A Caribbean sailing with a blend of Western and Eastern islands, including St. Barts, Puerto Rico and the Dominican Republic. A Holiday to Remember: Barcelona to Rome: 14 days aboard Oceania Allura, departing Dec. 20, 2027
A Mediterranean itinerary with calls in Spain, Morocco, Tunisia and Italy, offering a culturally rich festive season. Fairytale Holiday: Hong Kong to Singapore: 14 days aboard Oceania Riviera, departing Dec. 21, 2027
A festive journey through Southeast Asia, with an overnight in Ho Chi Minh City and another in Bangkok on New Year's Eve. A Kiwi Holiday: Sydney to Auckland: 12 days aboard Oceania Vista®, departing Dec. 23, 2027
A scenic voyage through Australia and New Zealand, including cruising Milford Sound and celebrating New Year's Eve in Wellington. Iberian New Year: Barcelona to Lisbon: 7 days aboard Oceania Aurelia, departing Dec. 28, 2027
A New Year's sailing along the Iberian Peninsula featuring a New Year's Eveovernight stay in Málaga and another overnight in Seville. Iberia to New World Passage: Barcelona to Miami: 21 days aboard Oceania Aurelia, departing Dec. 28, 2027
Enjoy New Year's celebrations in Málaga, calls in the Canary Islands and a relaxing transatlantic crossing. For more information on Oceania Cruises' collection of small, luxurious ships and curated global itineraries, visit OceaniaCruises.com or call 855-OCEANIA.

About Oceania Cruises®

Oceania Cruises® is the world's leading culinary- and destination-focused luxury cruise line. The line's intimate, luxurious ships feature The Finest Cuisine at Sea® and destination-rich itineraries that span the globe. Expertly curated travel experiences are available aboard the designer-inspired ships, which call on more than 600 marquee and boutique ports in more than 100 countries on seven continents, on voyages that range from seven to more than 200 days. Oceania Cruises® has five Sonata Class ships on order scheduled for delivery in 2027, 2029, 2032, 2035 and 2037. Oceania Cruises® is a wholly owned subsidiary of Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH).

SOURCE Oceania Cruises

LOS ANGELES, May 13, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Norwegian Cruise Line Holdings Ltd. ("Norwegian" or "the Company") (NYSE: NCLH) for violations of the securities laws.

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Norwegian Cruise Line Holdings Ltd. ("Norwegian" or the "Company") (NYSE: NCLH).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Norwegian and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On May 4, 2026, Norwegian issued a press release reporting its first quarter 2026 financial results and lowering its full year adjusted EPS guidance. 

On this news, Norwegian's stock price fell $6.79 per share, or 29.32%, to close at $16.37 per share on May 4, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP

NEW YORK, May 19, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Norwegian Cruise Line Holdings Ltd. (“Norwegian” or the “Company”) (NYSE: NCLH).  Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Norwegian and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On May 4, 2026, Norwegian issued a press release reporting its first quarter 2026 financial results and lowering its full year adjusted EPS guidance. 

On this news, Norwegian’s stock price fell $6.79 per share, or 29.32%, to close at $16.37 per share on May 4, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

NEW YORK, May 21, 2026 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Norwegian Cruise Line Holdings Ltd. ("Norwegian" or the "Company") (NYSE: NCLH).

Despite robust consumer demand, Norwegian Cruise Line trades at distressed valuations due to war fears and its recent operational missteps. NCLH's elevated debt and recent leadership turmoil have exacerbated underperformance, but execution issues are viewed as fixable with new management and activist involvement. Cash flow is expected to improve materially as Capex moderates post-2027, enabling rapid debt reduction along with a potential EBITDA of $3.5–4.5 billion by 2028–2030.

On May 27, 2026, Norwegian Cruise Line Holdings Ltd NCLH shares rose 6.1% today, reaching a current price of $18.15. This move comes amid a 52-week range that has seen a high of $27.18 and a low of $14.53.

GF Value™ verdict: Current price is $18.15, which is 17.4% below the GF Value™ estimate of $21.97.GF Score™ of 79/100 indicates the stock is above average in terms of its overall quality and potential for long-term returns.Most notable signal: Insiders have bought $4.2 million worth of stock in the last 3 months, suggesting confidence in the company's future. Is NCLH Overvalued or Undervalued? According to the GF Value™, Norwegian Cruise Line Holdings Ltd NCLH is currently valued at $21.97, while trading at $18.15. This indicates that the stock is 17.4% undervalued, presenting a potential margin of safety for investors. The GF Valuation label categorizes the stock as "Modestly Undervalued," suggesting that there is an opportunity for growth as the market recognizes the intrinsic value of the company. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

While the undervaluation signals a favorable opportunity, it is important to note that the company's financial strength is rated at 3/10, which may pose some risks. Investors should be cautious and consider the broader market conditions and company performance before making decisions.

How Does NCLH's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)15.2x18.7x (5-Year Median) Forward P/E11.0x- NCLH's current P/E ratio of 15.2x is 19% below its 5-year median P/E of 18.7x, indicating that the stock is trading at a lower valuation compared to its historical average. This analysis aligns with the GF Value™ verdict, reinforcing the notion that the company may be undervalued in the current market environment.

What Does NCLH's GF Score™ Tell Us? MetricRating GF Score™79/100 Financial Strength3/10 Profitability7/10 Growth7/10 Valuation8/10 Momentum7/10 The GF Score™ ranks NCLH at 79/100, indicating that it is above average in terms of its overall quality and potential returns. The strongest area is the Valuation rank at 8/10, suggesting favorable pricing relative to its intrinsic value. However, the Financial Strength score of 3/10 highlights a critical weakness, indicating that there may be concerns regarding the company's financial stability. The Profitability and Growth scores, both rated at 7/10, reflect a balanced approach to generating earnings and expanding operations, which are essential for long-term success.

What Are Insiders Doing with NCLH Stock? Recent insider activity has shown a positive trend for Norwegian Cruise Line Holdings Ltd, with insiders purchasing $4.2 million worth of shares in the last 3 months, and no selling activity reported. This buying pattern suggests that insiders have confidence in the company's future performance and believe that the current stock price is an attractive entry point. Such activity can often be a bullish signal for outside investors, indicating that those closest to the company are optimistic about its prospects.

What This Means for Investors Based on the GF Value™ assessment, Norwegian Cruise Line Holdings Ltd NCLH is currently undervalued. With a current price of $18.15 compared to a GF Value™ estimate of $21.97, there is a significant opportunity for price appreciation, offering investors a margin of safety. However, potential investors should remain aware of the company's financial challenges as indicated by the low Financial Strength score.

For the complete analysis, visit the Norwegian Cruise Line Holdings Ltd NCLH stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is NCLH's GF Score™?

NCLH has a GF Score™ of 79/100, indicating it is above average in terms of quality and potential long-term returns.

Is NCLH overvalued or undervalued?

According to GF Value™, NCLH is undervalued, with a current price of $18.15 compared to an estimated fair value of $21.97.

What is NCLH's P/E ratio?

NCLH has a P/E (TTM) ratio of 15.2x, which is 19% below its 5-year median P/E of 18.7x, suggesting it is trading at a lower valuation compared to its historical levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

A month has gone by since the last earnings report for Norwegian Cruise Line (NCLH - Free Report) . Shares have added about 7% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Norwegian Cruise Line due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Norwegian Cruise Line Holdings Ltd. before we dive into how investors and analysts have reacted as of late.

Norwegian Cruise Q1 Earnings Beat Estimates, Revenues MissNorwegian Cruise reported first-quarter 2026 results, with earnings beating the Zacks Consensus Estimate while revenues missed the same. The top and bottom lines improved on a year-over-year basis.

NCLH’s Q1 Earnings & RevenuesNorwegian Cruise reported adjusted earnings per share (EPS) of 23 cents, beating the Zacks Consensus Estimate of 15 cents by 53.3%. In the prior-year quarter, the company reported adjusted EPS of 10 cents.

Quarterly revenues of $2.33 billion missed the consensus mark of $2.34 billion by 0.5%. The metric increased 9.6% year over year.

Passenger ticket revenues were $1.54 billion compared with $1.42 billion reported in the prior-year quarter. Our model anticipated passenger ticket revenues to be $1.60 billion.

Onboard and other revenues increased to $788.9 million from $708.9 million reported in the prior-year quarter. We expected onboard and other revenues to be $722.7 million.

NCLH’s Expenses & Operating ResultsTotal cruise operating expenses in the first quarter increased to $1.38 billion from $1.30 billion reported in the prior-year quarter. Our model anticipated total cruise operating expenses to be $1.38 billion.

During the quarter, gross cruise costs per Capacity Day were approximately $287 compared with $297 reported in the prior-year period. Adjusted net cruise costs (excluding fuel) per Capacity Day amounted to about $169 on an as-reported basis.

Net interest expenses were $166 million, down from $217.9 million reported in the year-ago quarter.

NCLH’s Operating Performance MetricsCapacity Days increased to 6.39 million from 5.70 million reported in the prior-year quarter. Passenger Cruise Days rose to 6.63 million from 5.79 million.

Occupancy reached 103.8%, up from 101.5% reported in the prior-year period, reflecting strong onboard demand and improved fleet utilization.

Gross margin per Capacity Day increased 4% year over year, while Net Yield declined approximately 0.3% on an as-reported basis.

NCLH’s Balance SheetAs of March 31, 2026, the company had cash and cash equivalents of $185 million, down from $209.9 million at the end of 2025. Total debt was $15.2 billion.

Net debt stood at approximately $15 billion, with net leverage at 5.3x. Liquidity was $1.6 billion, including availability under its revolving credit facility.

Booking Update of NCLHThe company continues to operate below its optimal booking range, impacted by execution gaps and softer demand trends. Heightened geopolitical uncertainty, particularly related to Middle East tensions, has affected travel demand, especially in Europe.

While near-term bookings remain pressured, the company is implementing targeted actions to better align its commercial strategy with deployment and improve revenue management execution. These initiatives are expected to support gradual improvement over time.

Q2 & 2026 Guidance by NCLHFor second-quarter 2026, NCLH anticipates occupancy to be approximately 102.5% and Capacity Days to be about 6.6 million. Adjusted EBITDA is expected to be approximately $632 million, while adjusted EPS is projected at 38 cents.

For 2026, the company expects Capacity Days of approximately 26.25 million. Adjusted EBITDA is anticipated in the range of $2.48 billion to $2.64 billion, lower than the prior expectation of nearly $2.95 billion.

Adjusted EPS for 2026 is projected between $1.45 and $1.79, down from the earlier expectation of $2.38, indicating ongoing macroeconomic headwinds, including higher fuel costs and softer booking trends.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -32.48% due to these changes.

VGM ScoresAt this time, Norwegian Cruise Line has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a score of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Norwegian Cruise Line has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry PlayerNorwegian Cruise Line belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Royal Caribbean (RCL - Free Report) , has gained 10.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Royal Caribbean reported revenues of $4.45 billion in the last reported quarter, representing a year-over-year change of +11.3%. EPS of $3.60 for the same period compares with $2.71 a year ago.

Royal Caribbean is expected to post earnings of $3.91 per share for the current quarter, representing a year-over-year change of -10.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Royal Caribbean. Also, the stock has a VGM Score of C.

MIAMI, June 08, 2026 (GLOBE NEWSWIRE) -- Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) today released its 2025 Sail & Sustain® Report, highlighting progress across the Company’s global sustainability strategy and its five foundational pillars: Caring for Nature, Sailing Safely, Empowering People, Strengthening Our Communities, and Operating with Integrity & Accountability. Throughout 2025, the Company continued advancing initiatives across its operations, workforce, supply chain, and destinations through a focus on collaboration, innovation, and continuous improvement.

“Our Sail & Sustain program is designed to support resilience, discipline and long-term value creation,” said John W. Chidsey, chief executive officer of Norwegian Cruise Line Holdings Ltd. “The progress outlined in this year’s report reflects the dedication of our team members and partners around the world as we continue to strengthen our business, support our communities, and advance our sustainability journey.”

Key highlights from the 2025 Sail & Sustain report include:

Caring for Nature: Continued advancing collective action and environmental stewardship through investments in operational efficiency, advancements in shore power connectivity, alternative fuel readiness, including biofuel offtakes and progress towards methanol and liquefied natural gas capabilities for select newbuilds, and expanded biodiversity initiatives such as eDNA monitoring and marine conservation partnerships.Sailing Safely: Maintained a strong focus on the health, safety and security of guests and crew through robust public health programs, compliance measures, rigorous training and oversight across the fleet.Empowering People: Invested in the growth and well-being of team members through leadership development, training, mentorship and wellness programs, while continuing to foster an engaged workforce representing more than 120 nationalities around the world.Strengthening our Communities: Increased investment in local partnerships, workforce development, and community programs, supporting economic opportunity and cultural connection in key destinations.Operating with Integrity and Accountability: Strengthened supplier engagement through enhanced due diligence, traceability, and integration of sustainability considerations into procurement processes.
The full 2025 Sail & Sustain report is available at www.nclhltd.com/sustainability.

            About Norwegian Cruise Line Holdings Ltd.
Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) is a leading global cruise company which operates Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. With a combined fleet of 35 ships and ~75,000 Berths, NCLH offers itineraries to approximately 700 destinations worldwide. NCLH expects to add 16 additional ships across its three brands through 2037, which will add ~43,000 Berths to its fleet. To learn more, visit www.nclhltd.com.

Cautionary Statement Concerning Forward-Looking Statements
Some of the statements, estimates or projections contained in this release are “forward-looking statements” within the meaning of the U.S. federal securities laws intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained, or incorporated by reference, in this release, including, without limitation, statements related to Board composition and our value creation initiatives, our expectations regarding our results of operations, future financial position, including our future capital expenditures, plans, prospects, actions taken or strategies being considered with respect to our liquidity position, expected fleet additions and deliveries, including expected timing thereof, our expectations regarding the impact of macroeconomic conditions and recent global events, and expectations relating to our sustainability program, decarbonization efforts, and alternative fuel sources and related regulation may be forward-looking statements. Many, but not all, of these statements can be found by looking for words like “expect,” “anticipate,” “goal,” “project,” “plan,” “believe,” “seek,” “will,” “may,” “forecast,” “estimate,” “intend,” “future” and similar words. Forward-looking statements do not guarantee future performance and may involve risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to the impact of: adverse general economic factors, such as fluctuating or increasing levels of interest rates, inflation, unemployment, underemployment, tariff increases and trade wars, the volatility of fuel prices, declines in the securities and real estate markets, and perceptions of these conditions that decrease the level of disposable income of consumers or consumer confidence; our indebtedness and restrictions in the agreements governing our indebtedness that require us to maintain minimum levels of liquidity and be in compliance with maintenance covenants and otherwise limit our flexibility in operating our business, including the significant portion of assets that are collateral under these agreements; our ability to work with lenders and others or otherwise pursue options to defer, renegotiate, refinance or restructure our existing debt profile, near-term debt amortization, newbuild-related payments and other obligations and to work with credit card processors to satisfy current or potential future demands for collateral on cash advanced from customers relating to future cruises; our need for additional financing or financing to optimize our balance sheet, which may not be available on favorable terms, or at all, and our outstanding exchangeable notes and any future financing which may be dilutive to existing shareholders; shareholder activism and/or proxy contests; the unavailability of ports of call and the impacts of port and destination fees and expenses; future increases in the price of, or major changes, disruptions or reductions in, commercial airline services; changes involving the tax and environmental regulatory regimes in which we operate, including new and existing regulations aimed at reducing greenhouse gas emissions; the accuracy of any appraisals of our assets; our success in controlling operating expenses and capital expenditures; adverse events impacting the security of travel, or customer perceptions of the security of travel, such as terrorist acts, geopolitical conflict, armed conflict or threats thereof, acts of piracy, and other international events; public health crises, and their effect on the ability or desire of people to travel (including on cruises); adverse incidents involving cruise ships; our ability to maintain and strengthen our brand; breaches in data security or other disturbances to our information technology systems and other networks or our actual or perceived failure to comply with requirements regarding data privacy and protection; changes in fuel prices and the type of fuel we are permitted to use and/or other cruise operating costs; mechanical malfunctions and repairs, delays in our shipbuilding program, maintenance and refurbishments and the consolidation of qualified shipyard facilities; the risks and increased costs associated with operating internationally; our inability to recruit or retain qualified personnel or the loss of key personnel or employee relations issues; impacts related to climate change and our ability to achieve our climate-related or other sustainability goals; our inability to obtain adequate insurance coverage; implementing precautions in coordination with regulators and global public health authorities to protect the health, safety and security of guests, crew and the communities we visit and to comply with related regulatory restrictions; pending or threatened litigation, investigations and enforcement actions; volatility and disruptions in the global credit and financial markets, which may adversely affect our ability to borrow and could increase our counterparty credit risks, including those under our credit facilities, derivatives, contingent obligations, insurance contracts and new ship progress payment guarantees; our reliance on third parties to provide hotel management services for certain ships and certain other services; fluctuations in foreign currency exchange rates; our expansion into new markets and investments in new markets, businesses and land-based destination projects; overcapacity in key markets or globally; and other factors set forth under “Risk Factors” in our most recently filed Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. The above examples are not exhaustive and new risks emerge from time to time. There may be additional risks that we currently consider immaterial or which are unknown. Such forward-looking statements are based on our current beliefs, assumptions, expectations, estimates and projections regarding our present and future business strategies and the environment in which we expect to operate in the future. You are cautioned not to place undue reliance on the forward-looking statements included in this release, which speak only as of the date made. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in our expectations with regard thereto or any change of events, conditions or circumstances on which any such statement was based, except as required by law.

Media Contact:
[email protected]

Norwegian Cruise Line (NCLH - Free Report) closed the most recent trading day at $19.43, moving +1.94% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.5% for the day. Meanwhile, the Dow experienced a rise of 0.7%, and the technology-dominated Nasdaq saw an increase of 0.31%.

Shares of the cruise operator witnessed a gain of 19.65% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 1.82%, and the S&P 500's loss of 0.23%.

Market participants will be closely following the financial results of Norwegian Cruise Line in its upcoming release. The company is forecasted to report an EPS of $0.39, showcasing a 23.53% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.62 billion, indicating a 4.23% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.68 per share and a revenue of $10.14 billion, signifying shifts of -20.38% and +3.17%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Norwegian Cruise Line. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.81% downward. Norwegian Cruise Line is currently sporting a Zacks Rank of #5 (Strong Sell).

In terms of valuation, Norwegian Cruise Line is currently trading at a Forward P/E ratio of 11.35. This expresses a discount compared to the average Forward P/E of 15.94 of its industry.

Meanwhile, NCLH's PEG ratio is currently 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Leisure and Recreation Services was holding an average PEG ratio of 1.35 at yesterday's closing price.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 184, placing it within the bottom 25% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Shares of Hewlett Packard Enterprise (HPE +2.93%) have been on a tear. The enterprise-hardware company's stock has nearly doubled over the past month and is up roughly 130% year to date as of this writing, far outpacing the S&P 500.

A record quarter reported on June 1 only fueled the bull case for the stock: revenue jumped 40% year over year to $10.7 billion, and non-GAAP (adjusted) earnings per share more than doubled. Management also lifted its full-year forecast so much that its new fiscal 2026 targets now top what it had previously projected for fiscal 2028.

With the stock surging and the artificial intelligence (AI) build-out front and center, the question is whether HPE's results signal that the AI server trade is heating up or it's become overhyped.

Image source: Getty Images.

The server engine behind the surge HPE's server revenue rose 33% year over year to $5.5 billion in its fiscal second quarter of 2026 (the period ended April 30, 2026), up 29% from the prior quarter. That came alongside $1.8 billion in new AI systems orders during the quarter, which lifted the company's AI systems backlog to $5.9 billion heading into fiscal Q3 -- orders management importantly said skew toward enterprise and sovereign customers rather than just a handful of large cloud deals.

And the demand is broadening even further. HPE said its AI momentum is no longer concentrated in model-training clusters; inference and agentic workloads are now driving traditional server sales alongside purpose-built AI systems. Indeed, at its COMPUTEX showcase, the company rolled out a new ProLiant server built around Nvidia's latest Vera CPU, aimed at exactly those jobs.

But the 40% top-line growth needs context.

A large chunk of its strong top-line growth came from HPE's acquisition of Juniper Networks, which closed last July. Networking revenue surged 148% year over year to $2.7 billion, but when you strip out the deal, networking grew about 10%.

Management's own full-year guidance shows the clear difference in reported revenue growth and HPE's normalized revenue growth. The company guided for revenue to be up 29% to 33% as reported, but only at a high-teens rate on a comparable basis.

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Reasons to be cautious Further, there are some things to be concerned about.

First, management pointed to supply constraints, especially in memory, that are capping how fast it can turn orders into revenue, and it expects elevated costs to linger into 2027. That is why the backlog keeps building faster than sales.

The business is also a thin-margin one. HPE's cloud and AI segment, which houses the server line, posted a 12.4% operating margin in the quarter -- nearly double the year-ago 6.6%, but well short of the 21.6% its networking segment earned. Selling racks built around someone else's accelerators is high-volume, low-margin work, so a jump in server revenue does less for profit than the top-line figure suggests.

But the deeper question is durability.

"[T]he pipeline remains multiples of the current backlog, which is record-breaking at the company level," said HPE President and CEO Antonio Neri in the company's fiscal second-quarter earnings call.

Neri indicated that the order surge reflects deployment rather than stockpiling, and that HPE sees no sign that customers are pulling orders forward the way they did during the pandemic.

And even after the run-up, the stock doesn't necessarily look expensive, depending on how you view it. HPE trades at a forward price-to-earnings ratio of about 16 based the midpoint of management's fiscal 2026 adjusted earnings-per-share guidance of $3.35 to $3.45. For a company guiding to high-teens comparable revenue growth, that is a modest multiple.

But it can also be argued that it's modest for a reason.

Much of HPE's profit still comes from cyclical, low-margin hardware tied to a single demand wave, and the company is leaning on a debt-funded acquisition to reshape itself.

So, is the AI server trade heating up?

HPE's order book says yes, for now. And the demand looks broad. But the durability of that demand, not this quarter's headline, will decide whether the stock holds its gains. For investors who believe the build-out has years left to run, HPE looks reasonably priced here. But for those who have their doubts about the AI boom, exercising some caution here could make sense.

Shares of Hewlett Packard Enterprise (HPE +2.93%) surged higher after the company reported strong second-quarter results.

Not to be confused with former parent HP Inc., ticker symbol HPQ, which sells computers and printers, Hewlett Packard Enterprise is a major player in the enterprise data center and computing market, positioning itself as an edge-to-cloud hybrid infrastructure leader. Like rival Dell, the company is benefiting from a surge in artificial intelligence (AI) infrastructure spending.

With the stock up big, let's take a closer look at its results to see whether or not it's too late to buy the AI stock.

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Riding the AI wave HPE credited its strong growth and outlook to the convergence of networking and security in the data center space, as it helps customers scale their AI infrastructure with secure, high-performance networking. It is seeing particular strength in the enterprise and sovereign spaces, while noting that its customers are investing heavily in agentic AI and inference.

For its fiscal Q2, which ended April 30, the company's revenue surged 40% to $10.7 billion, helped by its acquisition of Juniper Networks. Cloud and AI revenue jumped 23% to $7.7 billion, while networking revenue rose 148%, or 10% on a normalized basis, to $2.7 billion.

It said that networking orders rose much more quickly than revenue in the quarter. Within the segment, normalized campus and branch orders climbed more than 20%, while enterprise data switching orders increased nearly 20%. Routing orders jumped nearly 30%, while security orders climbed by more than 15%.

HPE saw nice margin expansion, with gross margin climbing 810 basis points year over year to 36.5%. As a result, its adjusted earnings per share (EPS) nearly doubled from $0.41 to $0.79. That was well above the company's outlook for adjusted EPS of between $0.51 and $0.55.

The company raised its full-year outlook and now expects revenue growth of 29% to 33%, up from a prior outlook of 17% to 22% growth. Adjusted EPS is now expected to be between $3.35 and $3.45, above its prior $2.30 to $2.50 forecast.

It also introduced fiscal 2027 guidance, projecting revenue to grow by between 8% and 12%. Adjusted EPS is expected to increase by between 12% and 16%.

Image source: Getty Images.

HPE is riding the AI infrastructure wave, although some Wall Street analysts think the company is seeing a pull-forward in demand as enterprise customers look to get ahead of rising prices. The company said it is not seeing this, but it remains a potential risk.

With the stock trading at a forward P/E of 20 times this fiscal year's estimates, and already having tripled over the past year, I think there are better ways to play the AI infrastructure boom.

Broadcom (AVGO) and Hewlett Packard Enterprises (HPE) both beat earnings expectations, but diverged sharply as AVGO fell on muted AI guidance while HPE surged on accelerating AI server demand. AI trade leadership is rotating: early leaders like AVGO and NVDA are stabilizing, while HPE and DELL are experiencing recent breakout gains fueled by AI spending.

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Japanese technology leader deploys secure, on-premises AI factory in one month to use sensitive data under strict governance

TOKYO--(BUSINESS WIRE)--HPE (NYSE: HPE) today announced that S k y Co., Ltd. has deployed HPE Private Cloud AI, a turnkey AI factory solution that is part of the NVIDIA AI Computing by HPE portfolio. Delivered in just one month, the solution enables the company to safely harness sensitive data while accelerating AI-driven development and internal workflows under strict data governance.

S k y Co., Ltd. is a leading Japanese technology company with expertise in software development and system integration, with capabilities spanning enterprise and embedded systems from development through evaluation and validation. Given the highly sensitive nature of the data it manages, S k y Co., Ltd. enforces strict data governance policies and exercises tight control over the use of public cloud AI services, yet AI-driven development remains essential. To address this, S k y Co., Ltd. selected HPE Private Cloud AI, an integrated, on-premises solution co-developed by HPE and NVIDIA, enabling the secure use of sensitive data for AI.

“Building on our technological expertise and commitment to addressing customer challenges, we are advancing AI as a core technology foundation. While data is essential for AI, we prioritize the secure handling of highly sensitive customer and operational data,” said Junji Oura, president of S k y Co., Ltd. “We selected HPE Private Cloud AI for its ability to rapidly deliver a stable, on-premises environment that enables both security and AI use.”

HPE Private Cloud AI integrates servers, storage, networking, accelerated computing, services, and software into a single turnkey platform, reducing the complexity of AI infrastructure design and deployment. It enables organizations to securely harness sensitive data on premises, with a cloud-like operational experience for AI development and deployment. S k y Co., Ltd. has also adopted HPE GreenLake Flex Solutions, which enables the company to consume via a pay-as-you-go model, to optimize costs and scale flexibly based on demand, while supporting the full lifecycle from deployment to operations.

“We are delighted that S k y Co., Ltd., a leading technology company, has selected HPE Private Cloud AI, and we deeply value the trust placed in us by an organization driving advanced initiatives centered on software development,” said Hirokazu Mochizuki, senior vice president and managing director for HPE Japan. “As AI adoption increasingly defines competitiveness, speed of deployment is critical. True value is realized when organizations can securely harness data to unlock AI-driven innovation. HPE Private Cloud AI is designed to meet these requirements, enabling customers to accelerate time to value. We look forward to supporting S k y Co., Ltd.’s continued growth and innovation.”

With the new environment in place, S k y Co., Ltd. is accelerating the adoption of AI across its business. Looking ahead, the company plans to advance its AI capabilities toward AI agents, expand AI adoption in contract development, and grow its system integration business.

Related Resources:

S k y Co., Ltd. case study AI innovation drives industry-leading development About HPE

HPE (NYSE: HPE) is a leader in essential enterprise technology, bringing together the power of AI, cloud, and networking to help organizations achieve more. As pioneers of possibility, our innovation and expertise advance the way people live and work. We empower our customers across industries to optimize operational performance, transform data into foresight, and maximize their impact. Unlock your boldest ambitions with HPE. Discover more at www.hpe.com.

About S k y Co., Ltd.

S k y Co., Ltd. is an independent software company that develops and markets its software products while providing system integration services. The company delivers end-to-end capabilities spanning development, validation, and post-deployment support. With expertise in business and embedded systems, solutions for IT asset management, and education, Sky supports digital transformation across industries. Since its founding in 1985, the company has built strong expertise to support customers from problem-solving to value creation.

More News From Hewlett Packard Enterprise

Back to Newsroom

Hewlett Packard Enterprise (HPE - Free Report) closed the last trading session at $45.49, gaining 41.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $66.94 indicates a 47.2% upside potential.

The average comprises 17 short-term price targets ranging from a low of $23.00 to a high of $80.00, with a standard deviation of $12.4. While the lowest estimate indicates a decline of 49.4% from the current price level, the most optimistic estimate points to a 75.9% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

But, for HPE, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in HPEThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The Zacks Consensus Estimate for the current year has increased 47.4% over the past month, as eight estimates have gone higher compared to no negative revision.

Moreover, HPE currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much HPE could gain, the direction of price movement it implies does appear to be a good guide.

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Hewlett Packard Enterprise (HPE - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Hewlett Packard Enterprise currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if HPE is a promising momentum pick, let's examine some Momentum Style elements to see if this information technology products and services provider holds up.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For HPE, shares are up 14.31% over the past week while the Zacks Computer - Integrated Systems industry is down 3.89% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 41.85% compares favorably with the industry's 0.72% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics -- such as performance over the past three months or year -- can be useful as well. Shares of Hewlett Packard Enterprise have increased 111.29% over the past quarter, and have gained 149.67% in the last year. In comparison, the S&P 500 has only moved 7.44% and 21.61%, respectively.

Investors should also pay attention to HPE's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. HPE is currently averaging 38,329,836 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with HPE.

Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost HPE's consensus estimate, increasing from $2.42 to $3.41 in the past 60 days. Looking at the next fiscal year, 8 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that HPE is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Hewlett Packard Enterprise on your short list.