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Here's Why You Should Retain Vail Resorts (MTN) Stock Now
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Vail Resorts, Inc. (MTN - Free Report) is likely to benefit from investments in expansion projects, technological enhancements and a solid season pass program. So far this year, shares of the company have gained 16.7%, against the industry’s 0.1% decline. However, coronavirus-induced soft traffic is a concern.
Let’s discuss the factors that suggest that investors should retain the stock for the time being.
Growth Catalysts
Vail Resorts continues to reinvest in its resorts to boost customer traffic. During first-quarter fiscal 2022, the company announced the completion of several transformational enhancements to boost the guest experience. In Colorado, the company completed a 250-acres lift-served terrain expansion in the McCoy Park area of Beaver Creek. It also added a four-person high-speed lift at Breckenridge to serve the popular Peak 7. It replaced the Peru lift at Keystone with a six-person high-speed chairlift and the Peachtree lift at Crested Butte with a new three-person fixed-grip lift. Vail Resorts completed a transformational investment at Okemo with respect to the upgrade of the Quantum lift. The investments are likely to drive customer access and circulation in the upcoming periods.
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For fiscal 2022, the company has set aside $318-$328 million to provide increased lift capacity and enhance the guest experience. The plan includes the installation of 21 new or replacement lifts across 14 of its resorts. It also includes two incremental replacement lifts at Jack Frost and Big Boulder in Pennsylvania and a transformational lift-served terrain expansion at Keystone. The company believes that the initiative will boost lift capacity by more than 60% in the locations. However, Vail Resorts stated that developments are subject to regulatory approvals. Apart from lift upgrade and terrain expansion projects, the company is focused on technological enhancements to support its data-driven approach, guest experience and corporate infrastructure.
Owing to the higher demand for skiing, the company is witnessing higher season pass sales. Vail Resorts recorded robust season pass sales for the 2021/2022 North American ski season owing to a 20% reduction in pricing across all pass products. The company stated that through Dec 5, 2021, season pass units and dollars increased 47% and 21%, respectively, compared with the same period’s levels in 2020. The uptick was primarily driven by renewing pass holders and stronger unit growth from new pass holders. The company witnessed the strongest unit growth in the destination markets, which include the Northeast.
Going forward, the company is optimistic on the back of strong leisure travel demand and unit growth in terms of renewing pass holders. Its ability to leverage guest data, targeted digital marketing efforts, broad product offering, along with associated discounts are likely to yield in the upcoming periods.
Concerns
Although the company is optimistic about the 2022 performance, the coronavirus-related woes cannot be ruled out. Its 2022 results might get affected by changes in coronavirus-related guidelines and regulations by government bodies. Also, a shift in consumer behavior due to the pandemic might hurt performance. Although the company is witnessing gradual improvements in visitation, it is still lower than the pre-pandemic levels.
During the first quarter of fiscal 2022, COVID-19-related stay-at-home orders and temporary resort closures negatively impacted the company’s Australian ski season. In spite of resuming operations from September 2021, Vail Resorts apprehends the negative impact of pandemic-associated limitations and restrictions to persist throughout fiscal 2022.
Some better-ranked stocks in the Consumer Discretionary sector include Hilton Grand Vacations Inc. (HGV - Free Report) , Bluegreen Vacations Holding Corporation and Camping World Holdings, Inc. (CWH - Free Report) .
Hilton Grand Vacations sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 411.1%, on average. Shares of the company have increased 50.5% so far this year.
The Zacks Consensus Estimate for Hilton Grand Vacations’ current financial-year sales and earnings per share (EPS) suggests growth of 189.5% and 158.1%, respectively, from the year-ago period’s levels.
Bluegreen Vacations flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of the company have surged 143.6% so far this year.
The Zacks Consensus Estimate for Bluegreen Vacations’ current financial-year sales and EPS indicates a rise of 27.5% and 199.3%, respectively, from the year-ago period’s levels.
Camping World carries a Zacks Rank #2 (Buy). The company benefits from the launch of a fresh peer-to-peer RV rental marketplace and a mobile service marketplace. It has been investing heavily in product development.
Camping World has a trailing four-quarter earnings surprise of 70.9%, on average. Shares of the company have appreciated 46.8% so far this year. The Zacks Consensus Estimate for CWH’s financial-year sales and EPS suggests growth of 25.9% and 77.6%, respectively, from the year-ago period’s levels.
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Here's Why You Should Retain Vail Resorts (MTN) Stock Now
Vail Resorts, Inc. (MTN - Free Report) is likely to benefit from investments in expansion projects, technological enhancements and a solid season pass program. So far this year, shares of the company have gained 16.7%, against the industry’s 0.1% decline. However, coronavirus-induced soft traffic is a concern.
Let’s discuss the factors that suggest that investors should retain the stock for the time being.
Growth Catalysts
Vail Resorts continues to reinvest in its resorts to boost customer traffic. During first-quarter fiscal 2022, the company announced the completion of several transformational enhancements to boost the guest experience. In Colorado, the company completed a 250-acres lift-served terrain expansion in the McCoy Park area of Beaver Creek. It also added a four-person high-speed lift at Breckenridge to serve the popular Peak 7. It replaced the Peru lift at Keystone with a six-person high-speed chairlift and the Peachtree lift at Crested Butte with a new three-person fixed-grip lift. Vail Resorts completed a transformational investment at Okemo with respect to the upgrade of the Quantum lift. The investments are likely to drive customer access and circulation in the upcoming periods.
For fiscal 2022, the company has set aside $318-$328 million to provide increased lift capacity and enhance the guest experience. The plan includes the installation of 21 new or replacement lifts across 14 of its resorts. It also includes two incremental replacement lifts at Jack Frost and Big Boulder in Pennsylvania and a transformational lift-served terrain expansion at Keystone. The company believes that the initiative will boost lift capacity by more than 60% in the locations. However, Vail Resorts stated that developments are subject to regulatory approvals. Apart from lift upgrade and terrain expansion projects, the company is focused on technological enhancements to support its data-driven approach, guest experience and corporate infrastructure.
Owing to the higher demand for skiing, the company is witnessing higher season pass sales. Vail Resorts recorded robust season pass sales for the 2021/2022 North American ski season owing to a 20% reduction in pricing across all pass products. The company stated that through Dec 5, 2021, season pass units and dollars increased 47% and 21%, respectively, compared with the same period’s levels in 2020. The uptick was primarily driven by renewing pass holders and stronger unit growth from new pass holders. The company witnessed the strongest unit growth in the destination markets, which include the Northeast.
Going forward, the company is optimistic on the back of strong leisure travel demand and unit growth in terms of renewing pass holders. Its ability to leverage guest data, targeted digital marketing efforts, broad product offering, along with associated discounts are likely to yield in the upcoming periods.
Concerns
Although the company is optimistic about the 2022 performance, the coronavirus-related woes cannot be ruled out. Its 2022 results might get affected by changes in coronavirus-related guidelines and regulations by government bodies. Also, a shift in consumer behavior due to the pandemic might hurt performance. Although the company is witnessing gradual improvements in visitation, it is still lower than the pre-pandemic levels.
During the first quarter of fiscal 2022, COVID-19-related stay-at-home orders and temporary resort closures negatively impacted the company’s Australian ski season. In spite of resuming operations from September 2021, Vail Resorts apprehends the negative impact of pandemic-associated limitations and restrictions to persist throughout fiscal 2022.
Zacks Rank & Stocks to Consider
Vail Resorts currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Consumer Discretionary sector include Hilton Grand Vacations Inc. (HGV - Free Report) , Bluegreen Vacations Holding Corporation and Camping World Holdings, Inc. (CWH - Free Report) .
Hilton Grand Vacations sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 411.1%, on average. Shares of the company have increased 50.5% so far this year.
The Zacks Consensus Estimate for Hilton Grand Vacations’ current financial-year sales and earnings per share (EPS) suggests growth of 189.5% and 158.1%, respectively, from the year-ago period’s levels.
Bluegreen Vacations flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 695%, on average. Shares of the company have surged 143.6% so far this year.
The Zacks Consensus Estimate for Bluegreen Vacations’ current financial-year sales and EPS indicates a rise of 27.5% and 199.3%, respectively, from the year-ago period’s levels.
Camping World carries a Zacks Rank #2 (Buy). The company benefits from the launch of a fresh peer-to-peer RV rental marketplace and a mobile service marketplace. It has been investing heavily in product development.
Camping World has a trailing four-quarter earnings surprise of 70.9%, on average. Shares of the company have appreciated 46.8% so far this year. The Zacks Consensus Estimate for CWH’s financial-year sales and EPS suggests growth of 25.9% and 77.6%, respectively, from the year-ago period’s levels.