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Vail Resorts (MTN) Outpaces Stock Market Gains: What You Should Know

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Vail Resorts (MTN - Free Report) closed the most recent trading day at $243.84, moving +0.91% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow 0%, while the tech-heavy Nasdaq added 0.26%.

Prior to today's trading, shares of the ski resort operator had gained 6.69% over the past month. This has outpaced the Consumer Discretionary sector's gain of 3.66% and the S&P 500's gain of 4.12% 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 -$2.99 per share. This would mark a year-over-year decline of 23.05%. Our most recent consensus estimate is calling for quarterly revenue of $259.06 million, up 17.75% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.94 per share and revenue of $2.53 billion. These totals would mark changes of +5.17% and +11.57%, respectively, from last year.

Any recent changes to analyst estimates for MTN should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MTN is currently a Zacks Rank #3 (Hold).

In terms of valuation, MTN is currently trading at a Forward P/E ratio of 30.44. Its industry sports an average Forward P/E of 17.67, so we one might conclude that MTN is trading at a premium comparatively.

Investors should also note that MTN has a PEG ratio of 2.03 right now. 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 1.39 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 198, which puts it in the bottom 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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