What Happened?
A number of stocks fell in the afternoon session after the war with Iran pushed oil prices back to US$100 per barrel, fueling fears of a prolonged conflict and its impact on global inflation.
The price of Brent crude, the international oil benchmark, jumped 8.2% to $99.46 a barrel after briefly crossing the $100 threshold. The escalating conflict worsened worries about a potential blockade of oil production in the Persian Gulf, which could have long-term consequences for the world economy. In response to the geopolitical uncertainty, major stock indices fell, with the S&P 500 and the Nasdaq Composite each dropping over 1%, while the Dow Jones Industrial Average was down more than 500 points. The market volatility signaled investor concern over the potential for a debilitating period of inflation.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Consumer Discretionary - Travel and Vacation Providers company Norwegian Cruise Line (NYSE: NCLH) fell 4.7%. Is now the time to buy Norwegian Cruise Line? Access our full analysis report here, it’s free.
- Consumer Discretionary - Travel and Vacation Providers company Hilton Grand Vacations (NYSE: HGV) fell 3.2%. Is now the time to buy Hilton Grand Vacations? Access our full analysis report here, it’s free.
- Consumer Discretionary - Travel and Vacation Providers company Marriott Vacations (NYSE: VAC) fell 3.4%. Is now the time to buy Marriott Vacations? Access our full analysis report here, it’s free.
- Consumer Discretionary - Leisure Facilities company United Parks & Resorts (NYSE: PRKS) fell 4.4%. Is now the time to buy United Parks & Resorts? Access our full analysis report here, it’s free.
- Consumer Discretionary - Leisure Products company Polaris (NYSE: PII) fell 3.2%. Is now the time to buy Polaris? Access our full analysis report here, it’s free.
Zooming In On Norwegian Cruise Line (NCLH)
Norwegian Cruise Line’s shares are very volatile and have had 26 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 10 days ago when the stock dropped 10.8% on the news that the company reported fourth-quarter results that missed revenue expectations and provided a disappointing full-year 2026 profit outlook. The cruise operator's revenue for the fourth quarter came in at $2.24 billion, falling short of Wall Street's $2.34 billion estimate. More concerning for investors was the company's forward guidance. Norwegian guided for an adjusted profit of $2.38 per share for the 2026 financial year, which was 8.3% below analyst expectations. Furthermore, its full-year EBITDA guidance of $2.95 billion also came in below the consensus estimate of $3.05 billion. The weaker-than-expected outlook, coupled with a decline in operating margin in the quarter, signaled potential challenges ahead, prompting a negative reaction from the market.
Norwegian Cruise Line is down 14.5% since the beginning of the year, and at $19.48 per share, it is trading 27.7% below its 52-week high of $26.94 from September 2025. Investors who bought $1,000 worth of Norwegian Cruise Line’s shares 5 years ago would now be looking at an investment worth $633.97.
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