OneSpaWorld Stock Rises 11% in a Month: Buy, Sell or Hold?

OneSpaWorld Holdings Limited OSW stock has witnessed a decent run in the past month, outperforming the S&P 500 and the industry. In the same time frame, OSW has gained 10.9% compared with the industry and the S&P 500’s 9.1% and 2.9% growth, respectively.As of Monday, the stock closed at $19.30, marginally below its 52-week high of $19.69 but well above its 52-week low of $11.59. In the same time frame, other stocks like Carnival Corporation & plc CCL, Norwegian Cruise Line Holdings Ltd. NCLH and Royal Caribbean Cruises Ltd. RCL have gained 15.6%, 14.2% and 20.1%, respectively.Image Source: Zacks Investment ResearchTechnical indicators imply a continued trong performance for OSW. The stock is trading above its 50-day moving average, signaling robust upward momentum and price stability. This technical strength underscores positive market sentiment and confidence in OSW's financial health and prospects.50-Day Moving AverageImage Source: Zacks Investment ResearchFactors Favoring OSWThe company is benefiting from the expansion of maritime operations. OSW increased its ship count, operating health and wellness centers on 196 ships at quarter-end compared to 189 ships in the prior year. This addition of five new ship builds in 2024, including the Utopia of the Seas, contributed to growth in service coverage.In fourth-quarter 2024, medi-Spa offerings expanded to 144 ships, up from 135 in third-quarter 2023, with same-spa revenues achieving double-digit year-over-year growth. An increase in onboard doctors and nurses enabled a broader service portfolio.The company is benefiting from its focus on advancing OSW’s service offerings and enhancing value through innovative approaches. It has focused on introducing higher-value medi-spa and advanced facial techniques, necessitating specific equipment in treatment rooms and trained staff. OSW launched new offerings, such as cryotherapy body and LED light facial services, as well as the Elemis Biotec 2.0 facial, all of which saw robust revenue growth. These innovations cater to the growing demand for premium wellness services.The company has successfully attracted and retained staff, resulting in a growing percentage of experienced team members onboard. Many employees are signing on for additional contracts, highlighting the appealing workplace environment and their strong connection to the organization. These seasoned staff members play a key role in recommending higher-value products and services. This, combined with the simplification of service menus and processes, has driven growth in premium offerings. The company remains committed to initiatives aimed at retaining top-performing employees.Estimate Revision Favoring OSW StockThe Zacks Consensus Estimate for 2024 and 2025 adjusted earnings per share is pegged at 85 cents and 95 cents, indicating an improvement from 82 cents and 93 cents, respectively, anticipated 30 days ago.OSW Trading at a DiscountOSW is currently valued at a discount compared with the industry on a forward 12-month P/S basis. The company’s forward 12-month price-to-sales ratio is 2.12, lower than the industry.P/S (F12M)Image Source: Zacks Investment ResearchConclusionOneSpaWorld demonstrates strong momentum with its impressive stock performance, driven by operational expansion, innovative service offerings and robust financial health. The company’s growing maritime footprint, focus on high-value medi-spa treatments and ability to attract and retain experienced staff highlight its commitment to quality and innovation. Positive technical indicators, market confidence and valuation advantages relative to the industry further underscore its appeal. With upward revisions in earnings estimates indicating confidence in growth, OSW presents an attractive investment opportunity. The company currently has a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL): Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Norwegian Cruise Line Holdings Ltd. (NCLH): Free Stock Analysis Report OneSpaWorld Holdings Limited (OSW): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks