In the latest close session, Pinterest (PINS) was up +1.39% at $26.24. The stock's performance was ahead of the S&P 500's daily gain of 0.79%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 1.38%.
The stock of digital pinboard and shopping tool company has risen by 1.53% in the past month, leading the Computer and Technology sector's loss of 0.85% and the S&P 500's gain of 0.87%.
Market participants will be closely following the financial results of Pinterest in its upcoming release. The company's upcoming EPS is projected at $0.68, signifying a 21.43% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.33 billion, indicating a 15.15% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.62 per share and a revenue of $4.23 billion, demonstrating changes of +25.58% and +16.12%, respectively, from the preceding year.
Any recent changes to analyst estimates for Pinterest should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.47% decrease. Pinterest currently has a Zacks Rank of #4 (Sell).
Looking at its valuation, Pinterest is holding a Forward P/E ratio of 15.93. This valuation marks a discount compared to its industry average Forward P/E of 28.76.
It's also important to note that PINS currently trades at a PEG ratio of 0.58. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.87.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 25% 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.
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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