Pinterest (PINS) ended the recent trading session at $35.81, demonstrating a -1.35% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.49%. On the other hand, the Dow registered a gain of 0.38%, and the technology-centric Nasdaq increased by 0.72%.
Shares of the digital pinboard and shopping tool company witnessed a gain of 4.1% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.81%, and outperforming the S&P 500's gain of 2.99%.
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 $0.42, showcasing a 5% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.05 billion, reflecting a 16.56% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.72 per share and a revenue of $4.22 billion, demonstrating changes of +33.33% and +15.83%, respectively, from the preceding 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.21% downward. At present, Pinterest boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Pinterest has a Forward P/E ratio of 21.05 right now. This expresses a discount compared to the average Forward P/E of 32.6 of its industry.
One should further note that PINS currently holds a PEG ratio of 0.62. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.33.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 64, placing it within the top 26% of over 250 industries.
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.
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Pinterest, Inc. (PINS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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