Pinterest (PINS) shares soared 16.2% in the last trading session to close at $20.40. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock’s 0.6% gain over the past four weeks.
Pinterest is increasingly establishing a unique value proposition to advertisers that could provide a competitive advantage in the long haul. Through various innovations, it continues to dramatically improve the advertising platform, which presently appears to be one of the best ad platforms for consumer discretionary brands looking for new ways to reach customers and stretch smaller ad budgets. Pinterest’s Verified Merchants Program allows brands to create a catalog of shoppable products on the app and use special re-targeting capabilities in their ads.
The acquisition of the AI-powered, high-tech fashion-shopping platform, The Yes, will likely allow it to create a strategic organization to help steer the evolution of its features and merchants. Pinterest and The Yes share a common vision of making it easy for customers to find products matching their tastes and style. The company has been making continuous efforts to absorb creators publishing videos and live streams in order to make the shopping experience swift and easy for customers.
This digital pinboard and shopping tool company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of -32%. Revenues are expected to be $665.4 million, up 8.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Pinterest, the consensus EPS estimate for the quarter has been revised 55.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn’t usually translate into price appreciation. So, make sure to keep an eye on PINS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
Pinterest is a member of the Zacks Internet – Software industry. One other stock in the same industry, Splunk (SPLK), finished the last trading session 6.3% higher at $95.42. SPLK has returned 4.7% over the past month.
For Splunk
, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.37. This represents a change of +40.3% from what the company reported a year ago. Splunk currently has a Zacks Rank of #3 (Hold).
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