In the latest trading session, Airbnb, Inc. (ABNB) closed at $133.01, marking a -2% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.19%. Elsewhere, the Dow gained 0.66%, while the tech-heavy Nasdaq lost 0.03%.
The stock of company has risen by 12.33% in the past month, leading the Consumer Discretionary sector's loss of 0.12% and the S&P 500's gain of 0.54%.
Market participants will be closely following the financial results of Airbnb, Inc. in its upcoming release. The company is forecasted to report an EPS of $0.66, showcasing a 9.59% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.72 billion, reflecting a 9.73% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.16 per share and revenue of $12.18 billion. These totals would mark changes of +1.22% and 0%, respectively, from last year.
It is also important to note the 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 business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 0.06% rise in the Zacks Consensus EPS estimate. Currently, Airbnb, Inc. is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Airbnb, Inc. is currently exchanging hands at a Forward P/E ratio of 28.82. This represents a premium compared to its industry average Forward P/E of 17.73.
We can also see that ABNB currently has a PEG ratio of 2.11. 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 was holding an average PEG ratio of 1.2 at yesterday's closing price.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 44, this industry ranks in the top 18% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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Airbnb, Inc. (ABNB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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