Jim Cramer on Vail Resorts: “I’m Going to Say Buy It”

Company Overview - Vail Resorts, Inc. (NYSE:MTN) operates mountain ski areas and destination resorts, providing services such as dining, equipment rentals, and specialized ski schools [3] - The company also manages a portfolio of luxury hotels and condominiums, along with real estate development and sales operations [3] Recent Performance - Vail Resorts' shares declined by 4.7% in the third quarter of 2025, negatively impacting performance by 18 basis points [3] - Investor concerns regarding slowing visitation levels and stagnant season pass sales contributed to the stock's decline [3] Strategic Initiatives - In response to declining sales, Vail Resorts is refining its marketing strategy and investing in new media channels, including social media and influencer partnerships, to attract new skiers [3] - The company plans to narrow the pricing gap between lift tickets and season passes to encourage more non-pass holders to join its ecosystem, aiming for stronger pass growth in the upcoming year [3] Financial Health - Vail Resorts maintains strong margins and cash flow, which support share repurchases and a 6% dividend yield [3] - Consumer sentiment towards Vail's pass products is improving, and management is focused on enhancing the value of its portfolio [3] Valuation Outlook - The stock is currently trading at a significant discount to its historical valuation, with expectations that this discount will narrow as growth reaccelerates in the coming years [3]