Shares of Vail Resorts Inc. MTN hit a new 52-week high of $121.45 during the trading session on Nov 27. The company stands to benefit from the snowstorms in the Western region, which allowed it to open its Colorado, Utah and California ski resorts prior to schedule.
Share price of the Broomfield, CO-based company has increased 4.6% over the past month. The closing price of this mountain resorts operator was $120.92, reflecting a year-to-date return of more than 32.7%. The trading volume in the session was 1 million shares.
The pre-Thanksgiving opening of these resorts should boost Vail’s top line in the coming quarter. It will also help the company cash in on the demand for skiing early in the season.
These includes the newly renovated Park City resort in Utah. Vail bought Park City in Sep 2014 and took over the Canyons resort the year earlier. Later, it joined both through a gondola to form the biggest ski resort in the U.S. – with more than 7,300 acres of skiable terrain and 300 trails.
Further, the company’s two biggest season passes — the Epic and the Epic Local — would give guests access to the both the resorts. This would bring in a large number of guests, which would in turn boost the company’s revenues in the crucial winter months. The company announced during its last earnings call that the ticket prices have been raised while volume of tickets increased as well.
Vail is scheduled to release first fiscal-quarter 2016 results on Dec 7, 2015. The company has exceeded the Zacks consensus Estimate for earnings in 3 out of the last 5 quarters, and we expect the positive trend to continue. Apart from the Park City Resort, the company’s geographic diversity, which is reflected in its presence in most of the markets in the U.S., should drive revenues. In view of the strength in the demand for Vail Resorts passes last winter, the company should deliver a high-quality experience to its customer base.
Vail Resorts currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector are HomeAway, Inc. AWAY, International Speedway Corp. ISCA and Royal Caribbean Cruises Ltd. RCL. All these stocks carry a Zacks Rank #2 (Buy).
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