Back to top

Image: Bigstock

Airbnb, Inc. (ABNB) Advances While Market Declines: Some Information for Investors

Read MoreHide Full Article

In the latest trading session, Airbnb, Inc. (ABNB - Free Report) closed at $121.66, marking a +1.07% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.13%. Meanwhile, the Dow lost 0.27%, and the Nasdaq, a tech-heavy index, lost 0.07%.

Shares of the company witnessed a loss of 4.08% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 1.44%, and the S&P 500's gain of 2.71%.

The investment community will be paying close attention to the earnings performance of Airbnb, Inc. in its upcoming release. The company's upcoming EPS is projected at $2.29, signifying a 7.51% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $4.08 billion, showing a 9.44% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.22 per share and a revenue of $12.13 billion, signifying shifts of +2.68% and +9.25%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Airbnb, Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. Right now, Airbnb, Inc. possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, Airbnb, Inc. is holding a Forward P/E ratio of 28.53. This signifies a premium in comparison to the average Forward P/E of 20.62 for its industry.

We can additionally observe that ABNB currently boasts a PEG ratio of 2.2. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.34.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 154, finds itself in the bottom 38% echelons of all 250+ industries.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Airbnb, Inc. (ABNB) - free report >>

Published in