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Airbnb, Inc. (ABNB) Gains As Market Dips: What You Should Know

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In the latest market close, Airbnb, Inc. (ABNB - Free Report) reached $128.98, with a +1.49% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.46%. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, lost 3.07%.

The company's stock has dropped by 4.72% in the past month, falling short of the Consumer Discretionary sector's gain of 0.19% and the S&P 500's gain of 1.08%.

The investment community will be paying close attention to the earnings performance of Airbnb, Inc. in its upcoming release. On that day, Airbnb, Inc. is projected to report earnings of $0.63 per share, which would represent a year-over-year decline of 17.11%. Meanwhile, our latest consensus estimate is calling for revenue of $2.42 billion, up 9.19% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Airbnb, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.74% higher. Airbnb, Inc. is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Airbnb, Inc. is currently exchanging hands at a Forward P/E ratio of 28.16. This signifies a premium in comparison to the average Forward P/E of 19.08 for its industry.

It is also worth noting that ABNB currently has a PEG ratio of 1.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Leisure and Recreation Services industry had an average PEG ratio of 0.79 as trading concluded yesterday.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 74, placing it within the top 30% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ABNB in the coming trading sessions, be sure to utilize Zacks.com.


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