Pinterest (PINS) Outpaces Stock Market Gains: What You Should Know
Pinterest (PINS) closed at $26.75 in the latest trading session, marking a +1.44% move from the prior day. This move outpaced the S&P 500's daily gain of 0.89%. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq lost 0.68%.
Prior to today's trading, shares of the digital pinboard and shopping tool company had gained 7.94% over the past month. This has outpaced the Computer and Technology sector's gain of 2.42% and the S&P 500's loss of 3.9% in that time.
Wall Street will be looking for positivity from Pinterest as it approaches its next earnings report date. On that day, Pinterest is projected to report earnings of $0 per share, which would represent a year-over-year decline of 100%. Meanwhile, our latest consensus estimate is calling for revenue of $595.34 million, up 3.56% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.75 per share and revenue of $3.09 billion, which would represent changes of +20.97% and +10.1%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Pinterest. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Pinterest currently has a Zacks Rank of #3 (Hold).
Investors should also note Pinterest's current valuation metrics, including its Forward P/E ratio of 34.97. This valuation marks a discount compared to its industry's average Forward P/E of 41.28.
Investors should also note that PINS has a PEG ratio of 1.65 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PINS's industry had an average PEG ratio of 1.62 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% 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.
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 Report
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