Airbnb, Inc. (ABNB) closed at $113.22 in the latest trading session, marking a -1.15% move from the prior day. This change lagged the S&P 500's daily gain of 0.79%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 0.64%.
The the stock of company has fallen by 6.77% in the past month, lagging the Consumer Discretionary sector's loss of 6.56% and the S&P 500's loss of 3.56%.
Analysts and investors alike will be keeping a close eye on the performance of Airbnb, Inc. in its upcoming earnings disclosure. In that report, analysts expect Airbnb, Inc. to post earnings of $0.25 per share. This would mark a year-over-year decline of 39.02%. At the same time, our most recent consensus estimate is projecting a revenue of $2.26 billion, reflecting a 5.57% rise from the equivalent quarter last year.
ABNB's full-year Zacks Consensus Estimates are calling for earnings of $4.28 per share and revenue of $12.17 billion. These results would represent year-over-year changes of +4.14% and +9.65%, respectively.
Investors might also notice recent changes to analyst estimates for Airbnb, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.03% lower within the past month. Airbnb, Inc. presently features a Zacks Rank of #3 (Hold).
Investors should also note Airbnb, Inc.'s current valuation metrics, including its Forward P/E ratio of 26.76. Its industry sports an average Forward P/E of 17.35, so one might conclude that Airbnb, Inc. is trading at a premium comparatively.
It is also worth noting that ABNB currently has a PEG ratio of 2.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Leisure and Recreation Services industry was having an average PEG ratio of 1.02.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 72, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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