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Pinterest (PINS) Advances But Underperforms Market: Key Facts

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The latest trading session saw Pinterest (PINS - Free Report) ending at $28.89, denoting a +0.1% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.13%. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq decreased by 0.52%.

Prior to today's trading, shares of the digital pinboard and shopping tool company had lost 6.93% over the past month. This has lagged the Computer and Technology sector's gain of 1.56% and the S&P 500's gain of 3.67% in that time.

The upcoming earnings release of Pinterest will be of great interest to investors. It is anticipated that the company will report an EPS of $0.34, marking a 21.43% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $896.71 million, indicating a 17.49% upward movement from the same quarter last year.

PINS's full-year Zacks Consensus Estimates are calling for earnings of $1.43 per share and revenue of $3.64 billion. These results would represent year-over-year changes of +31.19% and +19.12%, respectively.

Any recent changes to analyst estimates for Pinterest should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.28% decrease. Pinterest currently has a Zacks Rank of #4 (Sell).

Investors should also note Pinterest's current valuation metrics, including its Forward P/E ratio of 20.13. This valuation marks a discount compared to its industry's average Forward P/E of 30.42.

It is also worth noting that PINS currently has a PEG ratio of 0.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 2.02 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 35% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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