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Vail Resorts (MTN) Flat As Market Gains: What You Should Know

Zacks Equity Research

Vail Resorts (MTN) closed the most recent trading day at $236.75, making no change from the previous trading session. This change lagged the S&P 500's 0.07% gain on the day. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, lost 0.29%.

Prior to today's trading, shares of the ski resort operator had gained 5.69% over the past month. This has outpaced the Consumer Discretionary sector's gain of 3.21% and the S&P 500's gain of 4.3% in that time.

MTN will be looking to display strength as it nears its next earnings release. On that day, MTN is projected to report earnings of -$2.99 per share, which would represent a year-over-year decline of 23.05%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $259.06 million, up 17.75% from the year-ago period.

MTN's full-year Zacks Consensus Estimates are calling for earnings of $7.94 per share and revenue of $2.53 billion. These results would represent year-over-year changes of +5.17% and +11.57%, respectively.

Investors should also note any recent changes to analyst estimates for MTN. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MTN is currently a Zacks Rank #3 (Hold).

Digging into valuation, MTN currently has a Forward P/E ratio of 29.83. For comparison, its industry has an average Forward P/E of 16.43, which means MTN is trading at a premium to the group.

It is also worth noting that MTN currently has a PEG ratio of 1.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Leisure and Recreation Services was holding an average PEG ratio of 1.56 at yesterday's closing price.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow MTN in the coming trading sessions, be sure to utilize Zacks.com.


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