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Pinterest (PINS) Gains But Lags Market: What You Should Know

Zacks Equity Research

Pinterest (PINS) closed at $20.78 in the latest trading session, marking a +0.78% move from the prior day. This move lagged the S&P 500's daily gain of 1.47%. At the same time, the Dow added 1.51%, and the tech-heavy Nasdaq gained 1.11%.

Prior to today's trading, shares of the digital pinboard and shopping tool company had gained 35.66% over the past month. This has outpaced the Computer and Technology sector's gain of 13.35% and the S&P 500's gain of 16.09% in that time.

PINS will be looking to display strength as it nears its next earnings release, which is expected to be May 5, 2020. The company is expected to report EPS of -$0.08, up 75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $270.90 million, up 34.17% from the year-ago period.

Investors might also notice recent changes to analyst estimates for PINS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.89% higher. PINS is holding a Zacks Rank of #3 (Hold) right now.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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