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Why Airbnb, Inc. (ABNB) Outpaced the Stock Market Today

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Airbnb, Inc. (ABNB - Free Report) closed the latest trading day at $164.71, indicating a +1.8% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.89%. Meanwhile, the Dow experienced a rise of 1.03%, and the technology-dominated Nasdaq saw an increase of 1.25%.

The company's shares have seen an increase of 9.21% over the last month, surpassing the Computer and Technology sector's gain of 3.77% and the S&P 500's gain of 3.56%.

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 $0.30, marking a 66.67% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.06 billion, up 13.44% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.68 per share and revenue of $11.07 billion, which would represent changes of -35.36% and +11.64%, respectively, from the prior year.

Any recent changes to analyst estimates for Airbnb, Inc. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 0.39% rise in the Zacks Consensus EPS estimate. Airbnb, Inc. presently features a Zacks Rank of #2 (Buy).

In the context of valuation, Airbnb, Inc. is at present trading with a Forward P/E ratio of 34.57. Its industry sports an average Forward P/E of 20.14, so one might conclude that Airbnb, Inc. is trading at a premium comparatively.

One should further note that ABNB currently holds a PEG ratio of 2.05. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Content stocks are, on average, holding a PEG ratio of 1.64 based on yesterday's closing prices.

The Internet - Content industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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