Pinterest (PINS – Free Report) ended the recent trading session at $29.56, demonstrating a -1.2% swing from the preceding day’s closing price. The stock trailed the S&P 500, which registered a daily loss of 1.11%. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 1.49%.
Shares of the digital pinboard and shopping tool company witnessed a loss of 1.32% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 5.27% and the S&P 500’s gain of 0.4%.
The investment community will be paying close attention to the earnings performance of Pinterest in its upcoming release. The company is predicted to post an EPS of $0.63, indicating a 18.87% growth compared to the equivalent quarter last 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.51 per share and a revenue of $3.63 billion, representing changes of +38.53% and +18.84%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Pinterest. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Pinterest boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Pinterest is currently being traded at a Forward P/E ratio of 19.85. For comparison, its industry has an average Forward P/E of 33.42, which means Pinterest is trading at a discount to the group.
Investors should also note that PINS has a PEG ratio of 0.59 right now. 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. The Internet – Software was holding an average PEG ratio of 2.39 at yesterday’s closing price.
The Internet – Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 23, this industry ranks in the top 10% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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