Pinterest (PINS) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Pinterest (PINS) closed the most recent trading day at $34.90, moving -1.75% from the previous trading session. This change lagged the S&P 500's 0.65% loss on the day. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, lost 1.16%.
The digital pinboard and shopping tool company's stock has dropped by 12.77% in the past month, falling short of the Computer and Technology sector's gain of 3.18% and the S&P 500's gain of 3.4%.
The investment community will be closely monitoring the performance of Pinterest in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.14, reflecting a 75% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $699.44 million, showing a 16.07% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.34 per share and revenue of $3.58 billion. These totals would mark changes of +22.94% and +17.32%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Pinterest. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 33.47% higher. Pinterest is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Pinterest currently has a Forward P/E ratio of 26.57. This expresses a discount compared to the average Forward P/E of 29.92 of its industry.
It is also worth noting that PINS currently has a PEG ratio of 1.32. 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. PINS's industry had an average PEG ratio of 1.81 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 50, putting it in the top 20% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Pinterest, Inc. (PINS) : Free Stock Analysis Report
