Airbnb, Inc. Expected to Report Positive Results in Upcoming Earnings Release
Airbnb, Inc. (ABNB) closed at $135.98 in the latest trading session, marking a +1.69% move from the prior day. This outpaced the S&P 500’s daily gain of 0.18%. While the Dow registered a gain of 0.07%, the technology-centric Nasdaq increased by 0.1%.
Analysts anticipate the company to report an EPS of $0.69, a 43.75% increase compared to the same quarter of the previous year. The latest consensus estimate expects revenue to be $2.15 billion, a 13.26% escalation compared to the year-ago quarter.
To benefit from this, the company has developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 0.26% lower. At present, Airbnb, Inc boasts a Zacks Rank of #3 (Hold).
Airbnb, Inc. (ABNB) Valuation Metrics Show Premium in Contrast to Industry
Airbnb, Inc’s current valuation metrics, including its Forward PE ratio of 30.67. This indicates a premium in contrast to its industry’s Forward PE of 16.55.
We can also see that ABNB currently has a PEG ratio of 1.58. The PEG ratio is akin to the commonly utilized PE ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As of the close of trade yesterday, the Internet – Content industry held an average PEG ratio of 0.85.
The Internet – Content industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 156, putting it in the bottom 39% 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. The research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Airbnb, Inc (ABNB) and Other Industry Participants Benefit from Shift in Consumer Behavior
The Zacks Internet – Content industry has been suffering from the reversal of the pandemic-led trends, along with challenging macroeconomic conditions globally. Participants like Airbnb ABNB, Perion Network PERI and Similarweb SMWB are benefiting from the accelerated shift in consumer behavior and the digital transformation.
Airbnb, Inc. (ABNB) is expected to report positive results in its upcoming earnings release. The company’s strong fundamentals and ability to adapt to changing consumer behavior.
