The latest trading session saw Pinterest (PINS) ending at $34.30, denoting a -0.61% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 0.55%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.7%.

The digital pinboard and shopping tool company's shares have seen an increase of 2.74% over the last month, surpassing the Computer and Technology sector's loss of 8.51% and the S&P 500's loss of 5.56%.

Market participants will be closely following the financial results of Pinterest in its upcoming release. It is anticipated that the company will report an EPS of $0.25, marking a 25% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $847.24 million, indicating a 14.49% growth compared to the corresponding quarter of the prior year.

PINS's full-year Zacks Consensus Estimates are calling for earnings of $1.82 per share and revenue of $4.28 billion. These results would represent year-over-year changes of +41.09% and +17.29%, respectively.

It is also important to note the recent changes to analyst estimates for Pinterest. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 witnessed a 3.85% increase. Pinterest is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Pinterest currently has a Forward P/E ratio of 19. Its industry sports an average Forward P/E of 25.9, so one might conclude that Pinterest is trading at a discount comparatively.

It's also important to note that PINS currently trades at a PEG ratio of 0.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 2.11 at yesterday's closing price.

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 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

This article originally published on Zacks Investment Research (zacks.com).

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