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Vail Resorts (MTN) Dips More Than Broader Markets: What You Should Know

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Vail Resorts (MTN - Free Report) closed at $232.37 in the latest trading session, marking a -1.47% move from the prior day. This change lagged the S&P 500's 0.3% loss on the day. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.14%.

Prior to today's trading, shares of the ski resort operator had gained 5.38% over the past month. This has outpaced the Consumer Discretionary sector's gain of 2.36% and the S&P 500's gain of 2.46% in that time.

Wall Street will be looking for positivity from MTN as it approaches its next earnings report date. In that report, analysts expect MTN to post earnings of -$2.53 per share. This would mark a year-over-year decline of 4.12%. Our most recent consensus estimate is calling for quarterly revenue of $259.06 million, up 17.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.94 per share and revenue of $2.53 billion, which would represent changes of +5.17% and +11.57%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for MTN. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.28% lower within the past month. MTN is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note MTN's current valuation metrics, including its Forward P/E ratio of 29.71. This valuation marks a premium compared to its industry's average Forward P/E of 16.27.

Investors should also note that MTN has a PEG ratio of 1.98 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MTN's industry had an average PEG ratio of 1.48 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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