U.S. markets close in 5 hours 18 minutes
  • S&P 500

    3,835.05
    -18.02 (-0.47%)
     
  • Dow 30

    30,941.42
    -234.59 (-0.75%)
     
  • Nasdaq

    13,487.34
    -43.58 (-0.32%)
     
  • Russell 2000

    2,128.67
    -12.76 (-0.60%)
     
  • Crude Oil

    52.64
    -0.49 (-0.92%)
     
  • Gold

    1,851.80
    -14.10 (-0.76%)
     
  • Silver

    25.48
    -0.38 (-1.47%)
     
  • EUR/USD

    1.2179
    +0.0006 (+0.05%)
     
  • 10-Yr Bond

    1.0940
    -0.0150 (-1.35%)
     
  • GBP/USD

    1.3667
    -0.0064 (-0.46%)
     
  • USD/JPY

    103.7680
    +0.2630 (+0.25%)
     
  • BTC-USD

    32,425.95
    +1,942.21 (+6.37%)
     
  • CMC Crypto 200

    643.50
    +33.51 (+5.49%)
     
  • FTSE 100

    6,686.26
    -29.16 (-0.43%)
     
  • Nikkei 225

    28,631.45
    -125.41 (-0.44%)
     

Pinterest (PINS) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·2 min read

Pinterest (PINS) closed the most recent trading day at $72.99, moving +0.88% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, lost 0.29%.

Prior to today's trading, shares of the digital pinboard and shopping tool company had gained 12.99% over the past month. This has outpaced the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 3.8% in that time.

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 $0.30 per share, which would represent year-over-year growth of 150%. Our most recent consensus estimate is calling for quarterly revenue of $641.95 million, up 60.53% from the year-ago period.

Any recent changes to analyst estimates for PINS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PINS is currently a Zacks Rank #2 (Buy).

Digging into valuation, PINS currently has a Forward P/E ratio of 233.39. Its industry sports an average Forward P/E of 88.82, so we one might conclude that PINS is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 30% 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.

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Pinterest, Inc. (PINS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.