Back to top

Image: Bigstock

Pinterest (PINS) Increases Despite Market Slip: Here's What You Need to Know

Read MoreHide Full Article

In the latest close session, Pinterest (PINS - Free Report) was up +1.36% at $33.45. This change outpaced the S&P 500's 0.5% loss on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 0.5%.

Heading into today, shares of the digital pinboard and shopping tool company had lost 8.74% over the past month, lagging the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 2.74%.

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 $0.42, marking a 5% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.05 billion, up 16.56% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.72 per share and a revenue of $4.22 billion, signifying shifts of +33.33% and +15.83%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Pinterest. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.21% lower within the past month. Pinterest is currently a Zacks Rank #3 (Hold).

From a valuation perspective, Pinterest is currently exchanging hands at a Forward P/E ratio of 19.14. This expresses a discount compared to the average Forward P/E of 31.31 of its industry.

It is also worth noting that PINS currently has a PEG ratio of 0.56. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.28.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 73, positioning it in the top 30% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Pinterest, Inc. (PINS) - free report >>

Published in