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Pinterest (PINS) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·2 mins read

Pinterest (PINS) closed the most recent trading day at $40.56, moving -1.02% from the previous trading session. This change lagged the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, lost 0.29%.

Coming into today, shares of the digital pinboard and shopping tool company had gained 11.39% in the past month. In that same time, the Computer and Technology sector lost 5.56%, while the S&P 500 lost 4.3%.

Investors will be hoping for strength from PINS as it approaches its next earnings release. On that day, PINS is projected to report earnings of $0.03 per share, which would represent year-over-year growth of 200%. Our most recent consensus estimate is calling for quarterly revenue of $362.30 million, up 29.53% from the year-ago period.

It is also important to note the recent changes to analyst estimates for PINS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection remained stagnant. PINS is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, PINS is currently trading at a Forward P/E ratio of 819.6. For comparison, its industry has an average Forward P/E of 79.53, which means PINS is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PINS in the coming trading sessions, be sure to utilize Zacks.com.

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Zacks Investment Research