In the latest trading session, Pinterest (PINS) closed at $20.25, marking a -0.74% move from the previous day. This change was narrower than the S&P 500’s 0.84% loss on the day. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Coming into today, shares of the digital pinboard and shopping tool company had gained 12.21% in the past month. In that same time, the Computer and Technology sector gained 1.72%, while the S&P 500 gained 2.02%.
Pinterest will be looking to display strength as it nears its next earnings release. On that day, Pinterest is projected to report earnings of $0.17 per share, which would represent a year-over-year decline of 32%. Our most recent consensus estimate is calling for quarterly revenue of $665.4 million, up 8.51% from the year-ago period.
PINS’s full-year Zacks Consensus Estimates are calling for earnings of $0.81 per share and revenue of $2.95 billion. These results would represent year-over-year changes of -28.32% and +14.47%, respectively.
Investors might also notice recent changes to analyst estimates for Pinterest. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 27.1% lower. Pinterest is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Pinterest currently has a Forward P/E ratio of 25.18. This represents a discount compared to its industry’s average Forward P/E of 42.85.
It is also worth noting that PINS currently has a PEG ratio of 1.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Internet – Software stocks are, on average, holding a PEG ratio of 2.38 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 45% 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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