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Airbnb, Inc. (ABNB) Laps the Stock Market: Here's Why

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Airbnb, Inc. (ABNB - Free Report) closed the most recent trading day at $123.70, moving +1.6% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.59%. On the other hand, the Dow registered a gain of 0.65%, and the technology-centric Nasdaq increased by 0.44%.

Heading into today, shares of the company had lost 6.68% over the past month, lagging the Consumer Discretionary sector's loss of 1.13% and the S&P 500's gain of 2.72%.

The investment community will be paying close attention to the earnings performance of Airbnb, Inc. in its upcoming release. In that report, analysts expect Airbnb, Inc. to post earnings of $2.29 per share. This would mark year-over-year growth of 7.51%. At the same time, our most recent consensus estimate is projecting a revenue of $4.08 billion, reflecting a 9.44% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $4.22 per share and a revenue of $12.13 billion, demonstrating changes of +2.68% and +9.25%, respectively, from the preceding 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.07% higher. Airbnb, Inc. currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Airbnb, Inc. is currently exchanging hands at a Forward P/E ratio of 28.86. This denotes a premium relative to the industry average Forward P/E of 21.01.

It's also important to note that ABNB currently trades at a PEG ratio of 2.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. ABNB's industry had an average PEG ratio of 1.28 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 40% 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.

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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