The latest trading session saw Pinterest (PINS – Free Report) ending at $32.07, denoting a +0.38% adjustment from its last day’s close. This move lagged the S&P 500’s daily gain of 0.64%. On the other hand, the Dow registered a gain of 0.85%, and the technology-centric Nasdaq increased by 0.31%.
Prior to today’s trading, shares of the digital pinboard and shopping tool company had lost 17.8% over the past month. This has lagged the Computer and Technology sector’s loss of 11.22% and the S&P 500’s loss of 7.69% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Pinterest in its upcoming earnings disclosure. The company is expected to report EPS of $0.25, up 25% from the prior-year quarter. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.82 per share and revenue of $4.28 billion, indicating changes of +41.09% and +17.29%, respectively, compared to the previous year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Pinterest. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 2.58% higher within the past month. 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 17.57. This signifies a discount in comparison to the average Forward P/E of 27.15 for its industry.
Investors should also note that PINS has a PEG ratio of 0.52 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. As the market closed yesterday, the Internet – Software industry was having an average PEG ratio of 2.04.
The Internet – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 120, finds itself in the top 48% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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