Airbnb, Inc. (ABNB) closed the most recent trading day at $137.19, moving +0.54% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.18%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq added 0.27%.
The company's stock has climbed by 4.02% in the past month, falling short of the Consumer Discretionary sector's gain of 8.02% and the S&P 500's gain of 4.46%.
Investors will be eagerly watching for the performance of Airbnb, Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.18, marking an 8.79% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.72 billion, showing a 9.52% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.19 per share and a revenue of $11.03 billion, signifying shifts of -42.13% and +11.24%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Airbnb, Inc. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.2% lower. Airbnb, Inc. currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Airbnb, Inc. is holding a Forward P/E ratio of 32.55. Its industry sports an average Forward P/E of 18.92, so one might conclude that Airbnb, Inc. is trading at a premium comparatively.
It's also important to note that ABNB currently trades at a PEG ratio of 1.9. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 0.81.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 36% 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.
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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