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Why Pinterest (PINS) Outpaced the Stock Market Today
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The most recent trading session ended with Pinterest (PINS - Free Report) standing at $34.15, reflecting a +1.22% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.61% for the day. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 0.33%.
Shares of the digital pinboard and shopping tool company have appreciated by 15.11% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.6% and the S&P 500's gain of 5.36%.
The upcoming earnings release of Pinterest will be of great interest to investors. The company is expected to report EPS of $0.34, up 21.43% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $897.07 million, indicating a 17.54% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.44 per share and a revenue of $3.64 billion, demonstrating changes of +32.11% and +19.17%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Pinterest. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% lower. Pinterest is currently a Zacks Rank #4 (Sell).
In terms of valuation, Pinterest is currently trading at a Forward P/E ratio of 23.5. This expresses a discount compared to the average Forward P/E of 31.14 of its industry.
Also, we should mention that PINS has a PEG ratio of 0.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.02.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Why Pinterest (PINS) Outpaced the Stock Market Today
The most recent trading session ended with Pinterest (PINS - Free Report) standing at $34.15, reflecting a +1.22% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.61% for the day. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 0.33%.
Shares of the digital pinboard and shopping tool company have appreciated by 15.11% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.6% and the S&P 500's gain of 5.36%.
The upcoming earnings release of Pinterest will be of great interest to investors. The company is expected to report EPS of $0.34, up 21.43% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $897.07 million, indicating a 17.54% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.44 per share and a revenue of $3.64 billion, demonstrating changes of +32.11% and +19.17%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Pinterest. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.15% lower. Pinterest is currently a Zacks Rank #4 (Sell).
In terms of valuation, Pinterest is currently trading at a Forward P/E ratio of 23.5. This expresses a discount compared to the average Forward P/E of 31.14 of its industry.
Also, we should mention that PINS has a PEG ratio of 0.71. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.02.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.