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Airbnb, Inc. (ABNB) Outpaces Stock Market Gains: What You Should Know

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Airbnb, Inc. (ABNB - Free Report) closed the latest trading day at $135.78, indicating a +0.89% change from the previous session's end. This change outpaced the S&P 500's 0.27% gain on the day. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq added 0.26%.

Heading into today, shares of the company had gained 4.94% over the past month, outpacing the Consumer Discretionary sector's gain of 1.51% and the S&P 500's gain of 2% in that time.

The investment community will be closely monitoring the performance of Airbnb, Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on November 7, 2024. It is anticipated that the company will report an EPS of $2.17, marking a 9.21% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.72 billion, indicating a 9.58% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.17 per share and revenue of $11.04 billion, indicating changes of -42.4% and +11.28%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Airbnb, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.52% fall in the Zacks Consensus EPS estimate. Airbnb, Inc. is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Airbnb, Inc. has a Forward P/E ratio of 32.25 right now. This denotes a premium relative to the industry's average Forward P/E of 19.01.

Meanwhile, ABNB's PEG ratio is currently 1.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABNB's industry had an average PEG ratio of 0.81 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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