Airbnb, Inc. (ABNB) Advances But Underperforms Market: Key Facts

Airbnb, Inc. (ABNB) closed the most recent trading day at $134.99, moving +0.35% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.1% for the day. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.

Coming into today, shares of the company had lost 4.55% in the past month. In that same time, the Consumer Discretionary sector lost 0.95%, while the S&P 500 gained 0.22%.

Market participants will be closely following the financial results of Airbnb, Inc. in its upcoming release. In that report, analysts expect Airbnb, Inc. to post earnings of $0.59 per share. This would mark a year-over-year decline of 22.37%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.43 billion, up 9.34% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $3.99 per share and a revenue of $11.05 billion, demonstrating changes of -44.89% and +11.41%, respectively, from the preceding year.

Any recent changes to analyst estimates for Airbnb, Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.76% lower. As of now, Airbnb, Inc. holds a Zacks Rank of #3 (Hold).

Investors should also note Airbnb, Inc.'s current valuation metrics, including its Forward P/E ratio of 33.69. This signifies a premium in comparison to the average Forward P/E of 21.77 for its industry.

Also, we should mention that ABNB has a PEG ratio of 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ABNB's industry had an average PEG ratio of 0.97 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 26, this industry ranks in the top 11% of all industries, numbering over 250.