In the latest trading session, Pinterest (PINS) closed at $44.22, marking a +0.89% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.25%. On the other hand, the Dow registered a gain of 0.15%, and the technology-centric Nasdaq increased by 0.03%.
Prior to today’s trading, shares of the digital pinboard and shopping tool company had gained 2.79% over the past month. This has lagged the Computer and Technology sector’s gain of 8.7% and the S&P 500’s gain of 3.34% 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’s earnings per share (EPS) are projected to be $0.28, reflecting a 33.33% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $847.13 million, indicating a 19.65% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.45 per share and revenue of $3.67 billion. These totals would mark changes of +33.03% and +20.06%, respectively, from last year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Pinterest. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, there’s been a 1.55% rise in the Zacks Consensus EPS estimate. At present, Pinterest boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Pinterest is presently being traded at a Forward P/E ratio of 30.17. This expresses a premium compared to the average Forward P/E of 29.7 of its industry.
One should further note that PINS currently holds a PEG ratio of 1.29. 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 – Software industry currently had an average PEG ratio of 1.7 as of yesterday’s close.
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The Internet – Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PINS in the coming trading sessions, be sure to utilize Zacks.com.
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