Airbnb, Inc. (ABNB) Declines More Than Market: Some Information for Investors

Airbnb, Inc. (ABNB) closed at $135.34 in the latest trading session, marking a -1.21% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.33%. On the other hand, the Dow registered a loss of 0.63%, and the technology-centric Nasdaq decreased by 0.22%.

The stock of company has fallen by 1.3% in the past month, lagging the Consumer Discretionary sector's gain of 4.98% and the S&P 500's gain of 4.07%.

Investors will be eagerly watching for the performance of Airbnb, Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.92, showcasing a 6.98% upward movement from the corresponding quarter of the prior year. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $4.18 per share and a revenue of $12.02 billion, signifying shifts of +1.7% and +8.29%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Airbnb, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Airbnb, Inc. is currently a Zacks Rank #3 (Hold).

In terms of valuation, Airbnb, Inc. is presently being traded at a Forward P/E ratio of 32.81. This expresses a premium compared to the average Forward P/E of 22.17 of its industry.

It's also important to note that ABNB currently trades at a PEG ratio of 2.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 2.03.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% 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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This article originally published on Zacks Investment Research (zacks.com).

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