In the latest close session, Pinterest (PINS) was down 3.31% at $25.99. This move lagged the S&P 500's daily loss of 1.07%. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq depreciated by 1.69%.
Prior to today's trading, shares of the digital pinboard and shopping tool company had gained 0.41% lagged the Computer and Technology sector's gain of 1.6% and the S&P 500's gain of 0.94%.
The investment community will be closely monitoring the performance of Pinterest in its forthcoming earnings report. The company is predicted to post an EPS of $0.68, indicating a 21.43% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.33 billion, up 15.15% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.62 per share and revenue of $4.23 billion. These totals would mark changes of +25.58% and +16.12%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Pinterest. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 7.23% lower. Currently, Pinterest is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Pinterest is currently trading at a Forward P/E ratio of 16.55. This signifies a discount in comparison to the average Forward P/E of 29.42 for its industry.
We can also see that PINS currently has a PEG ratio of 0.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PINS's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 24% echelons of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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