Airbnb, Inc. (ABNB) Rises Higher Than Market: Key Facts

Airbnb, Inc. (ABNB) ended the recent trading session at $126.81, demonstrating a +1.49% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.44%. Meanwhile, the Dow gained 0.36%, and the Nasdaq, a tech-heavy index, added 0.54%.

The stock of company has fallen by 6.21% in the past month, lagging the Consumer Discretionary sector's loss of 4.69% and the S&P 500's loss of 3.31%.

The investment community will be closely monitoring the performance of Airbnb, Inc. in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.3, marking a 25% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.62 billion, reflecting a 15.32% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.91 per share and revenue of $13.73 billion. These totals would mark changes of +21.84% and +12.14%, respectively, from last year.

Investors might also notice recent changes to analyst estimates 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 business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Airbnb, Inc. is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Airbnb, Inc. is at present trading with a Forward P/E ratio of 25.45. For comparison, its industry has an average Forward P/E of 16.01, which means Airbnb, Inc. is trading at a premium to the group.

Meanwhile, ABNB's PEG ratio is currently 1.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Leisure and Recreation Services industry stood at 1.31 at the close of the market yesterday.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 38% echelons 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.

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

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Free: See Our Top Stock And 4 Runners Up

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Airbnb, Inc. (ABNB): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research