In the latest trading session, Pinterest (PINS) closed at $32.15, marking a +1.58% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.19%. On the other hand, the Dow registered a loss of 0.7%, and the technology-centric Nasdaq increased by 0.04%.
Prior to today’s trading, shares of the digital pinboard and shopping tool company had gained 0.38% over the past month. This has lagged the Computer and Technology sector’s gain of 0.73% and the S&P 500’s gain of 1.95% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Pinterest in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.34, showcasing a 21.43% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $896.71 million, up 17.49% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.43 per share and revenue of $3.64 billion, which would represent changes of +31.19% and +19.12%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Pinterest. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Pinterest is currently a Zacks Rank #4 (Sell).
Investors should also note Pinterest’s current valuation metrics, including its Forward P/E ratio of 22.07. This valuation marks a discount compared to its industry’s average Forward P/E of 31.01.
One should further note that PINS currently holds a PEG ratio of 0.97. 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. PINS’s industry had an average PEG ratio of 2.07 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 80, finds itself in the top 32% echelons of all 250+ industries.
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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. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Pinterest, Inc. (PINS) : Free Stock Analysis Report
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