Jim Cramer’s Take on These 10 Stocks

6. Vail Resorts, Inc. (NYSE:MTN)

Number of Hedge Fund Holders: 35

During the lightning round, a caller inquired about Vail Resorts, Inc. (NYSE:MTN) and Cramer replied, “I actually agree with you. This stock has come down so hard. I’m getting real interested in MTN.”

Vail Resorts (NYSE:MTN) provides services like ski schools, dining, and retail at its mountain resorts, lodging, and real estate properties. The company also develops real estate and owns and manages luxury hotels and condominiums. Artisan Partners stated the following regarding Vail Resorts, Inc. (NYSE:MTN) in its Q4 2024 investor letter:

“Top Q4 contributors included Expedia, First Citizens and Vail Resorts, Inc. (NYSE:MTN). For Vail Resorts, a premium skiing, lodging and resort company, good snow accumulation early in the season and better-than-expected pass sales that trended higher since the company’s late-September update lifted shares. After two years of tough weather, featuring below average snowfall and highly variable temperatures that contributed to reduced visitation, the hope is early snow results this winter are a harbinger of a better ski season. Vail is one of a couple dominant players in an industry that benefits from high barriers to entry due to the fixed supply of suitable mountains. Of course, this is a highly seasonal business, dependent on appetite for ski vacations and the right weather conditions, but the company has made strides to improve the business model by increasing the percentage of its business from the advance commitment pass product, which transforms the business from one of uncertainty and weather dependency to one of greater visibility and predictability. This provides stability and the ability to spend on capex during the offseason to improve the guest experience as well as pursue additional footprint expansion. While some years are better than others, the company has been consistently free cash flow positive and prudently allocates capital, with excess capital returned to shareholders, primarily via dividends.”