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

Zacks Equity Research
·2 min read

Pinterest (PINS) closed the most recent trading day at $68.42, moving +0.51% from the previous trading session. This move lagged the S&P 500's daily gain of 0.71%. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 0.95%.

Heading into today, shares of the digital pinboard and shopping tool company had lost 3.19% over the past month, lagging the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 0.17% in that time.

Wall Street will be looking for positivity from PINS as it approaches its next earnings report date. In that report, analysts expect PINS to post earnings of $0.30 per share. This would mark year-over-year growth of 150%. Meanwhile, our latest consensus estimate is calling for revenue of $641.95 million, up 60.53% from the prior-year quarter.

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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. PINS currently has a Zacks Rank of #3 (Hold).

Digging into valuation, PINS currently has a Forward P/E ratio of 162.07. This valuation marks a premium compared to its industry's average Forward P/E of 83.05.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 25% 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.

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


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