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

Pinterest (PINS) closed at $36.52 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500's daily loss of 0.1%. Meanwhile, the Dow gained 0.26%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Prior to today's trading, shares of the digital pinboard and shopping tool company had lost 8.9% over the past month. This has lagged the Computer and Technology sector's gain of 3.66% and the S&P 500's gain of 4.4% in that time.

Wall Street will be looking for positivity from Pinterest as it approaches its next earnings report date. On that day, Pinterest is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 11.63%. Our most recent consensus estimate is calling for quarterly revenue of $833.34 million, up 18.1% from the year-ago period.

PINS's full-year Zacks Consensus Estimates are calling for earnings of $1.10 per share and revenue of $2.56 billion. These results would represent year-over-year changes of +161.9% and +51.5%, respectively.

Investors might also notice recent changes to analyst estimates for Pinterest. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Pinterest is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, Pinterest is holding a Forward P/E ratio of 33.47. This valuation marks a discount compared to its industry's average Forward P/E of 65.03.

Investors should also note that PINS has a PEG ratio of 0.63 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. The Internet - Software industry currently had an average PEG ratio of 3.61 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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