Back to top

Image: Bigstock

Vail Resorts (MTN) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Vail Resorts (MTN - Free Report) closed the most recent trading day at $238.06, moving +0.65% from the previous trading session. This move lagged the S&P 500's daily gain of 0.75%. Meanwhile, the Dow gained 0.69%, and the Nasdaq, a tech-heavy index, added 1.32%.

Coming into today, shares of the ski resort operator had gained 1.58% in the past month. In that same time, the Consumer Discretionary sector gained 4.54%, while the S&P 500 gained 3.42%.

Investors will be hoping for strength from MTN as it approaches 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.

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.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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).

Digging into valuation, MTN currently has a Forward P/E ratio of 29.75. This valuation marks a premium compared to its industry's average Forward P/E of 18.04.

Also, we should mention that MTN has a PEG ratio of 1.98. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Leisure and Recreation Services was holding an average PEG ratio of 1.6 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 223, which puts it in the bottom 13% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Vail Resorts, Inc. (MTN) - free report >>

Published in