Vail Resorts : The bullish trend is over
By Maxime Nonglaton
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$47.35 | $0 | $49.3 | +100% |
Fundamentally, the company is overvalued. It is currently trading 124 times its EPS. Sales are not expected to increase over the coming years. Net margin is very low. There is a lot of debt : net debt represents 2.11 times EBITDA. EPS revisions for 2012 and 2013 are decreasing since last October.
Technically, the stock is currently testing again its USD 48.1 resistance. It is a reversal situation because of the resistance and the slant mark. In weekly data, it is the same case. The security is in the upper part of its trading range between USD 40.8 and USD 47.5. After a huge increasing thanks to its Q3 results, the stock might suffer from a heavy correction.
Due to graphical analysis, investors can sell the stock immediately. The target price is USD 44. To avoid important losses, a stop loss will be fixed at USD 48.5.