Back to top

Image: Bigstock

Why Airbnb, Inc. (ABNB) Outpaced the Stock Market Today

Read MoreHide Full Article

The latest trading session saw Airbnb, Inc. (ABNB - Free Report) ending at $126.18, denoting a +0.57% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.01%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.08%.

Prior to today's trading, shares of the company had gained 9.12% over the past month. This has outpaced the Computer and Technology sector's gain of 1.03% and the S&P 500's gain of 1.21% in that time.

The upcoming earnings release of Airbnb, Inc. will be of great interest to investors. On that day, Airbnb, Inc. is projected to report earnings of $2.22 per share, which would represent a year-over-year decline of 7.11%. Meanwhile, our latest consensus estimate is calling for revenue of $3.71 billion, up 9.35% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.33 per share and revenue of $11.03 billion, indicating changes of -40.19% and +11.18%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates 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 company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 2.41% lower. Right now, Airbnb, Inc. possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Airbnb, Inc. currently has a Forward P/E ratio of 29. This expresses a premium compared to the average Forward P/E of 18.19 of its industry.

We can also see that ABNB currently has a PEG ratio of 1.69. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. ABNB's industry had an average PEG ratio of 1.58 as of yesterday's close.

The Internet - Content industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Airbnb, Inc. (ABNB) - free report >>

Published in