13 Best Consumer Discretionary Stocks To Buy Now

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7. Airbnb, Inc. (NASDAQ:ABNB)

Number of Hedge Fund Holders: 66

Airbnb, Inc. (NASDAQ:ABNB) ranks among the best consumer discretionary stocks to buy now. Despite recognizing Airbnb, Inc. (NASDAQ:ABNB)’s higher valuation than its rivals, Bernstein SocGen Group maintained its Outperform rating and $165 price target for the company on June 18.

Bernstein noted that full-year GAAP profit before tax margins are now about the same for Airbnb, Inc. (NASDAQ:ABNB) and its rivals, and that first-quarter results are seasonally skewed. The firm added that Airbnb’s somewhat higher consensus growth projection of 17% and higher free cash flow conversion of 28% support its valuation premium, indicating that the company is well priced according to current estimates.

Bernstein’s optimism stems from its belief that, despite first-quarter growth of 11% when accounting for calendar effects and potential acceleration from core markets, non-core segments, and new verticals, Airbnb’s multiple is primarily driven by expected mid-term revenue growth rates, which the consensus currently places at about 9.5%.

San Francisco-based Airbnb, Inc. (NASDAQ:ABNB) runs an online marketplace that links homeowners with travelers seeking accommodation.

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