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

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In the latest trading session, Airbnb, Inc. (ABNB - Free Report) closed at $132.15, marking a +1.24% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 1.11% for the day. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 1.43%.

Shares of the company have appreciated by 3.01% over the course of the past month, underperforming the Consumer Discretionary sector's gain of 3.35%, and the S&P 500's gain of 3.92%.

The investment community will be closely monitoring the performance of Airbnb, Inc. in its forthcoming earnings report. The company is expected to report EPS of $0.92, up 6.98% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.02 billion, indicating a 9.98% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $4.18 per share and a revenue of $12.02 billion, demonstrating changes of +1.7% and +8.29%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Airbnb, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, there's been a 0.02% rise in the Zacks Consensus EPS estimate. Airbnb, Inc. is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Airbnb, Inc. is presently being traded at a Forward P/E ratio of 31.26. Its industry sports an average Forward P/E of 20.19, so one might conclude that Airbnb, Inc. is trading at a premium comparatively.

Investors should also note that ABNB has a PEG ratio of 2.44 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Leisure and Recreation Services industry had an average PEG ratio of 1.53 as trading concluded yesterday.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 31% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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