Norwegian Cruise Line to Join S&P 500 Index
Cruise Line & Cruise Ship Norwegian Cruise Line Patrick Clarke October 06, 2017
Norwegian Cruise Line Holdings Ltd. was selected to join the S&P 500 Index, which tracks the 500 most widely held stocks on the New York Stock Exchange or NASDAQ.
The Miami-based cruise company said its inclusion will take effect when the markets open October 13.
Norwegian will be added to the S&P 500 GICS Hotels, Resorts & Cruise Lines Sub-Industry index.
"We are honored to be joining the prestigious blue chip companies that comprise the S&P 500," said Norwegian Cruise Line Holdings Ltd. President and CEO, Frank Del Rio, in a statement accompanying Thursday's announcement. "This significant milestone highlights our company's solid track record of strong financial performance since our initial public offering in 2013 and is a testament to the hard work and dedication of the talented men and women on board our 25 award-winning ships, our shoreside employees across the globe, and our management team and board of directors."
According to financial magazine Barron's, Norwegian Cruise Line shares rose by nearly 4 percent following Thursday's announcement, jumping to $58.
Citing Wells Fargo Securities analyst Timothy Conder, the publication reports the cruise company "has strong short- and long-term fundamentals and that its stock valuation, based on 2018 earnings per share estimates, looks attractive."
Barron's also noted that recent hurricanes in the Caribbean are expected to have minimal impact on Norwegian's fourth quarter 2017 and first quarter 2018 performance.
READ MORE: Norwegian Cruise Line Holdings Ltd. Lends a Hand
Norwegian's entry into the S&P 500 Index comes on the heels of the Cruise Lines International Association's (CLIA) 2016 Economic Impact Analysis study that found the global cruise industry contributed a record $47.76 billion to the economy in 2016, a growth of 3.6 percent from 2014.
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