Shares of Pursuit Attractions and Hospitality, Inc. (NYSE: PRSU) plummeted 5.03% in Tuesday's intraday trading session, following a damning analyst report recommending investors to sell the stock. The company, known for its iconic travel experiences across North America and Europe, is facing significant challenges that have raised concerns among market watchers.
According to a recent analysis by StockStory, Pursuit Attractions and Hospitality is struggling with declining sales and profitability. The report highlights that the company's sales have been declining by 2.4% annually over the last five years, indicating a lack of strong customer loyalty. More worryingly, earnings per share have fallen by 16.1% annually during the same period, outpacing the revenue decline and suggesting deteriorating profitability.
Adding to the company's woes, the analysis points out that Pursuit has been generating negative returns on capital, implying that some of its growth strategies have backfired. With a current stock price of $39.35, the company is trading at a steep valuation of 157.2x forward price-to-earnings, which the analysts find difficult to justify given the company's performance. These factors combined have likely contributed to today's sharp sell-off, as investors reassess their positions in light of the company's challenges.