Vail Resorts (MTN): One Good Looking Stock Chart
NEW YORK (TheStreet) -- If you've ever thought about writing a book on technical analysis, you might want to use this chart as a textbook example of how to buy with the 200-day moving average.
Note how Vail Resorts (MTN) - Get Report in the chart above dips to the rising 200-day moving average in March, and again in late September. Also, note the pickup in volume as prices touch and rebound. These were great buying opportunities. The chart also shows a bullish Moving Average Convergence Divergence (MACD) signal, but the On-Balance-Volume (OBV) is diverging a bit.
The longer term chart, above, shows MTN trading higher above the rising 40-week moving average for well over a year. The OBV line is fine and confirms the new highs in this time frame. The MACD oscillator is generating another positive crossover. It looks like MTN can maintain its winning ways and a $150 point and figure price objective is not out of the question.
TheStreet Ratings team rates VAIL RESORTS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate VAIL RESORTS INC (MTN) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 1.2%. Since the same quarter one year prior, revenues rose by 19.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- VAIL RESORTS INC has improved earnings per share by 7.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, VAIL RESORTS INC increased its bottom line by earning $2.97 versus $0.66 in the prior year. This year, the market expects an improvement in earnings ($3.56 versus $2.97).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 6.9% when compared to the same quarter one year prior, going from -$75.36 million to -$70.14 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market on the basis of return on equity, VAIL RESORTS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 34.03% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full analysis from the report here: MTN
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.