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Airbnb, Inc. (ABNB) Stock Slides as Market Rises: Facts to Know Before You Trade

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In the latest close session, Airbnb, Inc. (ABNB - Free Report) was down 1.62% at $132.34. The stock fell short of the S&P 500, which registered a gain of 0.52% for the day. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.48%.

Shares of the company witnessed a gain of 4.28% over the previous month, trailing the performance of the Consumer Discretionary sector with its gain of 5.55%, and outperforming the S&P 500's gain of 4.27%.

The upcoming earnings release of Airbnb, Inc. will be of great interest to investors. The company is expected to report EPS of $0.92, up 6.98% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.

It's also important for investors to be aware of any recent modifications to analyst estimates for Airbnb, Inc. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. Right now, Airbnb, Inc. possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Airbnb, Inc. is currently exchanging hands at a Forward P/E ratio of 32.21. This represents a premium compared to its industry average Forward P/E of 20.36.

Investors should also note that ABNB has a PEG ratio of 2.52 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.84.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 58, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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