The most recent trading session ended with Pinterest (PINS) standing at $26.17, reflecting a +0.42% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 0.06%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.1%.
The digital pinboard and shopping tool company's stock has dropped by 17.19% in the past month, falling short of the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 4.29%.
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 May 8, 2025. The company is expected to report EPS of $0.25, up 25% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $846.1 million, indicating a 14.34% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.74 per share and a revenue of $4.13 billion, representing changes of +34.88% and +13.23%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Pinterest. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 moved 7.68% lower. Pinterest is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Pinterest is currently exchanging hands at a Forward P/E ratio of 14.96. This expresses a discount compared to the average Forward P/E of 26.08 of its industry.
It's also important to note that PINS currently trades at a PEG ratio of 0.47. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 2.19 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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