Pinterest (PINS) closed at $23.55 in the latest trading session, marking a -0.08% move from the prior day. This change was narrower than the S&P 500’s 0.27% loss on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq lost 0.18%.
Heading into today, shares of the digital pinboard and shopping tool company had lost 1.46% over the past month, lagging the Computer and Technology sector’s gain of 7.53% and the S&P 500’s gain of 7.36% in that time.
Pinterest will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.04, down 63.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $572.22 million, up 17.93% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1 per share and revenue of $3.15 billion. These totals would mark changes of -11.5% and +22.26%, respectively, from last year.
Investors might also notice 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 shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection has moved 41.52% lower. Pinterest is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Pinterest is holding a Forward P/E ratio of 23.48. This represents a discount compared to its industry’s average Forward P/E of 51.31.
Investors should also note that PINS has a PEG ratio of 1.76 right now. 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. The Internet – Software industry currently had an average PEG ratio of 3.18 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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