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Airbnb, Inc. (ABNB) Exceeds Market Returns: Some Facts to Consider

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In the latest market close, Airbnb, Inc. (ABNB - Free Report) reached $142.01, with a +1.49% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.22%. Elsewhere, the Dow saw an upswing of 0.36%, while the tech-heavy Nasdaq appreciated by 0.32%.

Heading into today, shares of the company had lost 0.62% over the past month, lagging the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 1.61% in that time.

The investment community will be closely monitoring the performance of Airbnb, Inc. in its forthcoming earnings report. The company is predicted to post an EPS of $0.69, indicating a 43.75% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $2.16 billion, indicating a 13.46% upward movement from the same quarter last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Airbnb, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. Airbnb, Inc. currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Airbnb, Inc. has a Forward P/E ratio of 32.06 right now. For comparison, its industry has an average Forward P/E of 14.53, which means Airbnb, Inc. is trading at a premium to the group.

We can additionally observe that ABNB currently boasts a PEG ratio of 2.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Content industry held an average PEG ratio of 0.98.

The Internet - Content industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 21% of all 250+ industries.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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