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Airbnb, Inc. (ABNB) Registers a Bigger Fall Than the Market: Important Facts to Note

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In the latest trading session, Airbnb, Inc. (ABNB - Free Report) closed at $135.54, marking a -2.36% move from the previous day. This move lagged the S&P 500's daily loss of 1.13%. Elsewhere, the Dow saw a downswing of 1.79%, while the tech-heavy Nasdaq depreciated by 1.3%.

The company's shares have seen an increase of 1.48% over the last month, not keeping up with the Consumer Discretionary sector's gain of 3.54% and the S&P 500's gain of 3.55%.

The investment community will be closely monitoring the performance of Airbnb, Inc. in its forthcoming earnings report. In that report, analysts expect Airbnb, Inc. to post earnings of $0.92 per share. This would mark year-over-year growth of 6.98%. Our most recent consensus estimate is calling for quarterly revenue of $3.02 billion, up 9.98% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $4.18 per share and a revenue of $12.02 billion, demonstrating changes of +1.7% and +8.29%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Airbnb, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. Right now, Airbnb, Inc. possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Airbnb, Inc. is at present trading with a Forward P/E ratio of 33.24. For comparison, its industry has an average Forward P/E of 19.84, which means Airbnb, Inc. is trading at a premium to the group.

Meanwhile, ABNB's PEG ratio is currently 2.6. 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 industry had an average PEG ratio of 1.47 as trading concluded yesterday.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 32% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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