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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 the most recent trading day at $240.47, moving -0.94% from the previous trading session. This change lagged the S&P 500's daily loss of 0.06%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq added 0.24%.

Heading into today, shares of the ski resort operator had gained 3.73% over the past month, lagging the Consumer Discretionary sector's gain of 4.78% and the S&P 500's gain of 4.72% in that time.

MTN will be looking to display strength as it nears its next earnings release, which is expected to be December 9, 2019. 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%. 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 revisions help to show the ever-changing nature of near-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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. MTN is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that MTN has a Forward P/E ratio of 30.58 right now. Its industry sports an average Forward P/E of 17.83, so we one might conclude that MTN is trading at a premium comparatively.

Meanwhile, MTN's PEG ratio is currently 2.04. 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. The Leisure and Recreation Services was holding an average PEG ratio of 1.46 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 216, 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.

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