Pinterest (PINS) closed at $34.75 in the latest trading session, marking a -1.03% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.27%.
The digital pinboard and shopping tool company's stock has climbed by 6.62% in the past month, falling short of the Computer and Technology sector's gain of 11.99% and the S&P 500's gain of 6.9%.
The investment community will be paying close attention to the earnings performance of Pinterest in its upcoming release. It is anticipated that the company will report an EPS of $0.34, marking a 17.24% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $973.08 million, reflecting a 13.99% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.84 per share and revenue of $4.15 billion, which would represent changes of +42.64% and +13.8%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Pinterest. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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 past month, the Zacks Consensus EPS estimate has shifted 1.39% upward. Right now, Pinterest possesses a Zacks Rank of #3 (Hold).
Investors should also note Pinterest's current valuation metrics, including its Forward P/E ratio of 19.12. This indicates a discount in contrast to its industry's Forward P/E of 29.06.
It is also worth noting that PINS currently has a PEG ratio of 0.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry had an average PEG ratio of 2.29 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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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