Pinterest (PINS) Stock Sinks As Market Gains: What You Should Know
The most recent trading session ended with Pinterest (PINS) standing at $44.12, reflecting a -0.63% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.09%. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.3%.
The digital pinboard and shopping tool company's stock has climbed by 5.41% in the past month, falling short of the Computer and Technology sector's gain of 6.18% and outpacing the S&P 500's gain of 3.38%.
Analysts and investors alike will be keeping a close eye on the performance of Pinterest in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.28, marking a 33.33% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $847.13 million, up 19.65% from the year-ago period.
PINS's full-year Zacks Consensus Estimates are calling for earnings of $1.45 per share and revenue of $3.67 billion. These results would represent year-over-year changes of +33.03% and +20.06%, respectively.
It is also important to note the recent changes to analyst estimates for Pinterest. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.55% higher within the past month. Pinterest is currently a Zacks Rank #3 (Hold).
Looking at valuation, Pinterest is presently trading at a Forward P/E ratio of 30.56. This represents a premium compared to its industry's average Forward P/E of 29.97.
Investors should also note that PINS has a PEG ratio of 1.31 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.7 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 33% of over 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.
To follow PINS in the coming trading sessions, be sure to utilize Zacks.com.
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Pinterest, Inc. (PINS) : Free Stock Analysis Report
