Pinterest (PINS) ended the recent trading session at $20.77, demonstrating a -5.59% change from the preceding day's closing price. This change lagged the S&P 500's 0.84% loss on the day. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 1.43%.
The stock of digital pinboard and shopping tool company has fallen by 16.98% in the past month, lagging the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 1.8%.
Investors will be eagerly watching for the performance of Pinterest in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 12, 2026. The company's earnings per share (EPS) are projected to be $0.66, reflecting a 17.86% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.33 billion, showing a 15.15% escalation compared to the year-ago quarter.
PINS's full-year Zacks Consensus Estimates are calling for earnings of $1.62 per share and revenue of $4.23 billion. These results would represent year-over-year changes of +25.58% and 0%, respectively.
It is also important to note the recent changes to analyst estimates for Pinterest. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.84% lower. Pinterest presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Pinterest is presently being traded at a Forward P/E ratio of 11.72. This represents a discount compared to its industry average Forward P/E of 22.25.
It is also worth noting that PINS currently has a PEG ratio of 0.42. 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 1.24 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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