Pinterest (PINS) closed at $33.12 in the latest trading session, marking a +2.63% move from the prior day. This move outpaced the S&P 500's daily loss of 0.16%. On the other hand, the Dow registered a gain of 0.44%, and the technology-centric Nasdaq decreased by 0.76%.
Coming into today, shares of the digital pinboard and shopping tool company had lost 11% in the past month. In that same time, the Computer and Technology sector gained 3.34%, while the S&P 500 gained 1.14%.
The investment community will be closely monitoring the performance of Pinterest in its forthcoming earnings report. On that day, Pinterest is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 5%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.05 billion, indicating a 16.56% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.72 per share and a revenue of $4.23 billion, indicating changes of +33.33% and +16.02%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Pinterest presently features a Zacks Rank of #2 (Buy).
Digging into valuation, Pinterest currently has a Forward P/E ratio of 18.72. For comparison, its industry has an average Forward P/E of 28.74, which means Pinterest is trading at a discount to the group.
Meanwhile, PINS's PEG ratio is currently 0.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.99.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 24% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Pinterest, Inc. (PINS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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