Pinterest (PINS) closed the latest trading day at $30.66, indicating a -0.68% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 1.54% for the day. Meanwhile, the Dow experienced a drop of 1.63%, and the technology-dominated Nasdaq saw a decrease of 1.63%.
Shares of the digital pinboard and shopping tool company witnessed a gain of 0.1% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.11% and outperforming the S&P 500's loss of 2.2%.
The investment community will be paying close attention to the earnings performance of Pinterest in its upcoming release. It is anticipated that the company will report an EPS of $0.63, marking a 18.87% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.14 billion, indicating a 16.03% growth compared to the corresponding quarter of the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Pinterest. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.45% lower. Pinterest is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Pinterest has a Forward P/E ratio of 17.49 right now. This valuation marks a discount compared to its industry's average Forward P/E of 28.07.
It is also worth noting that PINS currently has a PEG ratio of 0.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.18.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pinterest, Inc. (PINS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.