Here's Why Pinterest (PINS) Gained But Lagged the Market Today
Pinterest (PINS) closed at $43.90 in the latest trading session, marking a +0.25% move from the prior day. This change lagged the S&P 500's 0.85% gain on the day. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq increased by 1.53%.
Prior to today's trading, shares of the digital pinboard and shopping tool company had gained 4.21% over the past month. This has outpaced the Computer and Technology sector's loss of 3.6% and the S&P 500's gain of 3.11% in that time.
Market participants will be closely following the financial results of Pinterest in its upcoming release. The company's earnings per share (EPS) are projected to be $0.28, reflecting a 33.33% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $847.13 million, indicating a 19.65% growth compared to the corresponding quarter of the prior year.
PINS's full-year Zacks Consensus Estimates are calling for earnings of $1.43 per share and revenue of $3.67 billion. These results would represent year-over-year changes of +31.19% and +20.06%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Pinterest. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Pinterest is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Pinterest is currently trading at a Forward P/E ratio of 30.62. This represents a premium compared to its industry's average Forward P/E of 30.18.
Investors should also note that PINS has a PEG ratio of 1.31 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.73.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 Report
