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Airbnb, Inc. (ABNB) Gains But Lags Market: What You Should Know

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In the latest trading session, Airbnb, Inc. (ABNB) closed at $108.14, marking a +0.38% move from the previous day. This move lagged the S&P 500's daily gain of 0.99%. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.31%.

Prior to today's trading, shares of the company had gained 8.24% over the past month. This has outpaced the Computer and Technology sector's loss of 11.18% and the S&P 500's gain of 7.91% in that time.

Airbnb, Inc. will be looking to display strength as it nears its next earnings release, which is expected to be August 2, 2022. On that day, Airbnb, Inc. is projected to report earnings of $0.41 per share, which would represent year-over-year growth of 472.73%. Meanwhile, our latest consensus estimate is calling for revenue of $2.1 billion, up 57.51% from the prior-year quarter.

ABNB's full-year Zacks Consensus Estimates are calling for earnings of $1.83 per share and revenue of $8.31 billion. These results would represent year-over-year changes of +421.05% and +38.67%, respectively.

Any recent changes to analyst estimates for Airbnb, Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.34% higher within the past month. Airbnb, Inc. is currently a Zacks Rank #3 (Hold).

Investors should also note Airbnb, Inc.'s current valuation metrics, including its Forward P/E ratio of 58.97. This represents a premium compared to its industry's average Forward P/E of 23.9.

Meanwhile, ABNB's PEG ratio is currently 3.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Content industry currently had an average PEG ratio of 1.89 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 163, which puts it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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