In the latest trading session, Airbnb, Inc. (ABNB) closed at $125.44, marking a -1.26% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.44%. Meanwhile, the Dow experienced a rise of 0.14%, and the technology-dominated Nasdaq saw an increase of 0.7%.
The company's stock has dropped by 2.22% in the past month, falling short of the Consumer Discretionary sector's gain of 1.92% and the S&P 500's gain of 4.03%.
Market participants will be closely following the financial results of Airbnb, Inc. in its upcoming release. The company is expected to report EPS of $2.29, up 7.51% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $4.08 billion, indicating a 9.44% growth compared to the corresponding quarter of the prior year.
ABNB's full-year Zacks Consensus Estimates are calling for earnings of $4.22 per share and revenue of $12.13 billion. These results would represent year-over-year changes of +2.68% and +9.25%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Airbnb, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. Currently, Airbnb, Inc. is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Airbnb, Inc. currently has a Forward P/E ratio of 30.11. This indicates a premium in contrast to its industry's Forward P/E of 21.28.
Also, we should mention that ABNB has a PEG ratio of 2.32. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.35 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 99, finds itself in the top 41% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Airbnb, Inc. (ABNB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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