The most recent trading session ended with Pinterest (PINS – Free Report) standing at $30.94, reflecting a +1.18% shift from the previouse trading day’s closing. This move lagged the S&P 500’s daily gain of 1.26%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 1.77%.
Prior to today’s trading, shares of the digital pinboard and shopping tool company had lost 3.17% over the past month. This has lagged the Computer and Technology sector’s gain of 0.84% and the S&P 500’s loss of 2.82% in that time.
The investment community will be paying close attention to the earnings performance of Pinterest in its upcoming release. In that report, analysts expect Pinterest to post earnings of $0.63 per share. This would mark year-over-year growth of 18.87%. Simultaneously, our latest consensus estimate expects the revenue to be $1.14 billion, showing a 16.03% escalation compared to the year-ago quarter.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Pinterest. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 past month, the Zacks Consensus EPS estimate has shifted 3.17% downward. Pinterest is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Pinterest is at present trading with a Forward P/E ratio of 17.3. This valuation marks a discount compared to its industry’s average Forward P/E of 27.87.
Investors should also note that PINS has a PEG ratio of 0.52 right now. 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 2.04 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 25, positioning it in the top 10% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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