Pinterest (PINS) ended the recent trading session at $35.34, demonstrating a -1.12% change from the preceding day's closing price. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.31%.
Heading into today, shares of the digital pinboard and shopping tool company had gained 13.5% over the past month, outpacing the Computer and Technology sector's gain of 7.62% and the S&P 500's gain of 5.05%.
Analysts and investors alike will be keeping a close eye on the performance of Pinterest in its upcoming earnings disclosure. The company is expected to report EPS of $0.34, up 17.24% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $973.08 million, up 13.99% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.84 per share and a revenue of $4.15 billion, demonstrating changes of +42.64% and +13.8%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Pinterest. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.91% higher within the past month. As of now, Pinterest holds a Zacks Rank of #3 (Hold).
In the context of valuation, Pinterest is at present trading with a Forward P/E ratio of 19.46. This indicates a discount in contrast to its industry's Forward P/E of 28.31.
We can additionally observe that PINS currently boasts a PEG ratio of 0.58. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Software stocks are, on average, holding a PEG ratio of 2.25 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 52, putting it in the top 22% of all 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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