Strength Seen in Vail Resorts (MTN): Can Its 4.4% Jump Turn into More Strength?
Vail Resorts (MTN) shares ended the last trading session 4.4% higher at $228.71. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.1% loss over the past four weeks.
Vail Resorts’ recent surge in stock value is attributed to optimism regarding the company's robust sales of pass products, supported by a compelling value proposition, pricing strategies, and increased numbers of renewing pass holders. The company has introduced the 2024/25 Epic Pass, commencing at $982, granting limitless entry to 42 global resorts, encompassing destinations like Vail Mountain and Whistler Blackcomb. CEO Kirsten Lynch emphasizes investments and advancements, including upgrades to lifts and the introduction of the My Epic app. Newly incorporated features involve plans for Switzerland's Crans-Montana Mountain Resort and the introduction of a Mobile Pass at Whistler Blackcomb. Additional enhancements include streamlined Buddy Tickets redemption and Epic Lift Upgrade initiatives at multiple resorts, backed by a significant capital plan surpassing $214 million. Positive investor sentiments are being witnessed on the back of passholder benefits like Epic Mountain Rewards, Epic FlexPay, and Epic Coverage.
This ski resort operator is expected to post quarterly earnings of $6.08 per share in its upcoming report, which represents a year-over-year change of +17.8%. Revenues are expected to be $1.15 billion, up 4.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Vail Resorts, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on MTN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Vail Resorts belongs to the Zacks Leisure and Recreation Services industry. Another stock from the same industry, Atour Lifestyle Holdings Limited Sponsored ADR (ATAT), closed the last trading session 0.3% lower at $18.88. Over the past month, ATAT has returned 4%.
Atour Lifestyle Holdings Limited Sponsored ADR's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.19. Compared to the company's year-ago EPS, this represents a change of +111.1%. Atour Lifestyle Holdings Limited Sponsored ADR currently boasts a Zacks Rank of #4 (Sell).
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Vail Resorts, Inc. (MTN) : Free Stock Analysis Report
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