Airbnb, Inc. (ABNB – Free Report) ended the recent trading session at $131.81, demonstrating a -1.18% swing from the preceding day’s closing price. This move lagged the S&P 500’s daily loss of 1.07%. Elsewhere, the Dow lost 0.97%, while the tech-heavy Nasdaq lost 1.19%.
Shares of the company witnessed a loss of 2% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 1.28% and the S&P 500’s loss of 0.36%.
Market participants will be closely following the financial results of Airbnb, Inc. in its upcoming release. The company is forecasted to report an EPS of $0.59, showcasing a 22.37% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.43 billion, indicating a 9.34% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.99 per share and revenue of $11.05 billion. These totals would mark changes of -44.89% and +11.41%, respectively, from last 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Within the past 30 days, our consensus EPS projection has moved 0.9% lower. Currently, Airbnb, Inc. is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Airbnb, Inc. is currently trading at a Forward P/E ratio of 33.45. This valuation marks a premium compared to its industry’s average Forward P/E of 21.24.
One should further note that ABNB currently holds a PEG ratio of 1.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Leisure and Recreation Services industry currently had an average PEG ratio of 0.98 as of yesterday’s close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 22, this industry ranks in the top 9% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow ABNB in the coming trading sessions, be sure to utilize Zacks.com.
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