Vail Resorts (MTN) Moves 3.5% Higher: Will This Strength Last?
Vail Resorts MTN shares soared 3.5% in the last trading session to close at $235.93. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.2% loss over the past four weeks.
Vail Resorts’ rally is buoyed by optimism regarding the company’s strong pass product sales, courtesy of strong value proposition, pricing initiatives and unit growth among renewing pass holders. Also, increased investment in terms of transformational lift served terrain expansion projects bode well.
This ski resort operator is expected to post quarterly loss of $3.27 per share in its upcoming report, which represents a year-over-year change of -21.1%. Revenues are expected to be $282.49 million, up 5.7% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and 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, Carnival (CCL), closed the last trading session 2.3% lower at $15.37. Over the past month, CCL has returned -12.8%.
For Carnival , the consensus EPS estimate for the upcoming report has changed +19.2% over the past month to $0.74. This represents a change of +227.6% from what the company reported a year ago. Carnival currently has a Zacks Rank of #2 (Buy).
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