The most recent trading session ended with Pinterest (PINS) standing at $25.40, reflecting a -1.47% shift from the previouse trading day's closing. This move lagged the S&P 500's daily loss of 0.23%. Meanwhile, the Dow lost 0.91%, and the Nasdaq, a tech-heavy index, added 0.1%.
The the stock of digital pinboard and shopping tool company has fallen by 24.84% in the past month, lagging the Computer and Technology sector's loss of 16.18% and the S&P 500's loss of 12.13%.
Investors will be eagerly watching for the performance of Pinterest in its upcoming earnings disclosure. The company is expected to report EPS of $0.25, up 25% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $847.37 million, indicating a 14.51% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.82 per share and revenue of $4.22 billion. These totals would mark changes of +41.09% and +15.8%, respectively, from last year.
Any recent changes to analyst estimates for Pinterest should also be noted by investors. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.3% rise in the Zacks Consensus EPS estimate. Currently, Pinterest is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Pinterest is currently trading at a Forward P/E ratio of 14.18. This expresses a discount compared to the average Forward P/E of 23.71 of its industry.
Meanwhile, PINS's PEG ratio is currently 0.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PINS's industry had an average PEG ratio of 1.77 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 34% of all industries, numbering over 250.
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.
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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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