In the latest trading session, Pinterest (PINS) closed at $34.54, marking a -1.93% move from the previous day. This change lagged the S&P 500's 0.84% loss on the day. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw a decrease of 0.91%.
Coming into today, shares of the digital pinboard and shopping tool company had gained 8.14% in the past month. In that same time, the Computer and Technology sector gained 0%, while the S&P 500 gained 1.44%.
The investment community will be closely monitoring the performance of Pinterest in its forthcoming earnings report. 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. In the meantime, our current consensus estimate forecasts the revenue to be $973.08 million, indicating a 13.99% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.84 per share and a revenue of $4.15 billion, signifying shifts of +42.64% and +13.8%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Pinterest. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.91% higher. Right now, Pinterest possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Pinterest is currently exchanging hands at a Forward P/E ratio of 57.9. This expresses a premium compared to the average Forward P/E of 45.44 of its industry.
Investors should also note that PINS has a PEG ratio of 1.74 right now. 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 the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 3.23.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 47, putting it in the top 20% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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