In the latest trading session, Pinterest (PINS) closed at $43.12, marking a -1.15% move from the previous day. This change lagged the S&P 500’s daily loss of 0.31%. Meanwhile, the Dow experienced a rise of 0.67%, and the technology-dominated Nasdaq saw a decrease of 1.09%.
Shares of the digital pinboard and shopping tool company have appreciated by 5.26% over the course of the past month, underperforming the Computer and Technology sector’s gain of 6.41% and outperforming the S&P 500’s gain of 2.73%.
Market participants will be closely following the financial results of Pinterest in its upcoming release. The company’s upcoming EPS is projected at $0.28, signifying a 33.33% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $847.13 million, showing a 19.65% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.45 per share and a revenue of $3.67 billion, representing changes of +33.03% and +20.06%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Pinterest. 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 shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.55% upward. Pinterest presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Pinterest is presently trading at a Forward P/E ratio of 30.02. Its industry sports an average Forward P/E of 30.05, so one might conclude that Pinterest is trading at a discount comparatively.
Meanwhile, PINS’s PEG ratio is currently 1.28. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The average PEG ratio for the Internet – Software industry stood at 1.72 at the close of the market yesterday.
Story continues
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pinterest, Inc. (PINS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
