In the latest close session, Pinterest (PINS) was up +1.27% at $27.14. This change outpaced the S&P 500's 0.65% gain on the day. Meanwhile, the Dow experienced a rise of 0.48%, and the technology-dominated Nasdaq saw an increase of 0.82%.
The digital pinboard and shopping tool company's shares have seen a decrease of 0.3% over the last month, surpassing the Computer and Technology sector's loss of 1.6% and falling behind the S&P 500's gain of 1.15%.
Analysts and investors alike will be keeping a close eye on the performance of Pinterest in its upcoming earnings disclosure. On that day, Pinterest is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 21.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.33 billion, up 15.15% from the year-ago period.
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 0%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Pinterest. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.99% increase. Pinterest currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Pinterest is presently being traded at a Forward P/E ratio of 14.23. This signifies a discount in comparison to the average Forward P/E of 24.73 for its industry.
One should further note that PINS currently holds a PEG ratio of 0.51. 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 1.51.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 53, positioning it in the top 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pinterest, Inc. (PINS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
