Pinterest (PINS – Free Report) closed the latest trading day at $31.60, indicating a +0.96% change from the previous session’s end. This change lagged the S&P 500’s 1.08% gain on the day. On the other hand, the Dow registered a gain of 0.92%, and the technology-centric Nasdaq increased by 1.41%.
Heading into today, shares of the digital pinboard and shopping tool company had lost 20.4% over the past month, lagging the Computer and Technology sector’s loss of 13.17% and the S&P 500’s loss of 8.26% in that time.
The investment community will be paying close attention to the earnings performance of Pinterest in its upcoming release. On that day, Pinterest is projected to report earnings of $0.25 per share, which would represent year-over-year growth of 25%. Meanwhile, the latest consensus estimate predicts the revenue to be $847.24 million, indicating a 14.49% increase compared to the same quarter of the previous year.
PINS’s full-year Zacks Consensus Estimates are calling for earnings of $1.82 per share and revenue of $4.28 billion. These results would represent year-over-year changes of +41.09% and +17.29%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Pinterest. These revisions help to show the ever-changing nature of near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.58% upward. Pinterest is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Pinterest is currently being traded at a Forward P/E ratio of 17.21. This denotes a discount relative to the industry’s average Forward P/E of 27.36.
Also, we should mention that PINS has a PEG ratio of 0.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Internet – Software industry had an average PEG ratio of 2.06 as trading concluded yesterday.
The Internet – Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 33% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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