In the latest close session, Airbnb, Inc. (ABNB) was down 1.05% at $120.22. The stock trailed the S&P 500, which registered a daily gain of 0.01%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, lost 0.28%.
Shares of the company have depreciated by 3.09% over the course of the past month, underperforming the Consumer Discretionary sector's loss of 1.11%, and the S&P 500's gain of 4.83%.
The upcoming earnings release of Airbnb, Inc. will be of great interest to investors. The company is forecasted to report an EPS of $2.29, showcasing a 7.51% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.08 billion, up 9.44% from the year-ago period.
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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Airbnb, Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. As of now, Airbnb, Inc. holds a Zacks Rank of #3 (Hold).
With respect to valuation, Airbnb, Inc. is currently being traded at a Forward P/E ratio of 28.79. This indicates a premium in contrast to its industry's Forward P/E of 21.5.
Investors should also note that ABNB has a PEG ratio of 2.22 right now. 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 1.23 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 138, which puts it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Airbnb, Inc. (ABNB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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