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Pinterest (PINS) Gains As Market Dips: What You Should Know

Zacks Equity Research

Pinterest (PINS) closed at $22.61 in the latest trading session, marking a +1.94% move from the prior day. This change outpaced the S&P 500's 0.09% loss on the day. Meanwhile, the Dow gained 0.04%, and the Nasdaq, a tech-heavy index, added 0.06%.

Coming into today, shares of the digital pinboard and shopping tool company had gained 18.99% in the past month. In that same time, the Computer and Technology sector gained 4.55%, while the S&P 500 gained 1.26%.

Investors will be hoping for strength from PINS as it approaches its next earnings release, which is expected to be February 6, 2020.

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

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. PINS is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, PINS currently has a Forward P/E ratio of 422.48. This valuation marks a premium compared to its industry's average Forward P/E of 57.68.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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