Viad Corp (NYSE:VVI) stock has reached a new 52-week high, touching $45.71, marking a significant milestone for the company's shares. This peak reflects a robust 1-year change, with the stock price soaring by an impressive 39.07%. Investors have shown increased confidence in Viad Corp, as the company's strategic initiatives and financial performance drive positive sentiment in the market. The 52-week high serves as a testament to Viad's growing market presence and the successful execution of its business plans over the past year.
In other recent news, Viad Corp has entered into an agreement to sell its GES business to Truelink Capital for $535 million. The sale is part of a strategic move to separate GES from Viad’s Pursuit attractions and hospitality business. Following the sale, Viad plans to rebrand as Pursuit. In 2023, Pursuit welcomed 3.5 million visitors and generated revenue of $350 million. David Barry, President of Pursuit, will assume the roles of CEO and President after the transaction.
Viad Corp's Q2 2024 earnings exceeded expectations, with significant contributions from its GES and Pursuit divisions. Jill Bright has been appointed to Viad Corp's Board of Directors, serving until the 2025 annual meeting of stockholders. Oppenheimer reaffirmed its Outperform rating on Viad Corp, indicating confidence in the company's growth capacity. Finally, Viad Corp plans to scale its Pursuit division through organic and inorganic investments, allocating $20 million for projects in 2024.
InvestingPro Insights
Viad Corp's (VVI) recent achievement of a new 52-week high is further supported by InvestingPro data and insights. The company's stock has demonstrated strong momentum, with a 26.53% price return over the last three months and an 11.01% return in just the past week. This aligns with the InvestingPro Tip that VVI is trading near its 52-week high, reflecting the market's positive sentiment.
InvestingPro data reveals that Viad's revenue growth is robust, with a 17.1% increase over the last twelve months as of Q3 2024, and an even more impressive 24.54% quarterly growth. This growth trajectory supports the InvestingPro Tip suggesting that net income is expected to grow this year, potentially fueling further stock price appreciation.
Despite trading at a relatively high P/E ratio of 43.4, the company's PEG ratio of 0.29 indicates that it may be undervalued relative to its growth prospects. This is consistent with the InvestingPro Tip that VVI is trading at a low P/E ratio relative to near-term earnings growth, suggesting there may still be room for upside.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Viad Corp, providing a deeper understanding of the company's financial health and market position.
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