Pinterest (PINS) closed the most recent trading day at $35.42, moving -1.06% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.33% for the day. Elsewhere, the Dow lost 0.63%, while the tech-heavy Nasdaq lost 0.22%.
Heading into today, shares of the digital pinboard and shopping tool company had gained 5.23% over the past month, lagging the Computer and Technology sector's gain of 5.24% and outpacing the S&P 500's gain of 4.07%.
The investment community will be closely monitoring the performance of Pinterest in its forthcoming earnings report. The company is forecasted to report an EPS of $0.34, showcasing a 17.24% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $973.08 million, indicating a 13.99% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.84 per share and revenue of $4.15 billion, indicating changes of +42.64% and +13.8%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Pinterest. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Pinterest boasts a Zacks Rank of #3 (Hold).
Digging into valuation, Pinterest currently has a Forward P/E ratio of 19.49. This indicates a discount in contrast to its industry's Forward P/E of 28.6.
We can also see that PINS currently has a PEG ratio of 0.58. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 2.21 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 67, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Pinterest, Inc. (PINS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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