Pinterest (PINS) Stock Sinks As Market Gains: What You Should Know
Pinterest (PINS) closed at $54.23 in the latest trading session, marking a -0.37% move from the prior day. This change lagged the S&P 500's 0.85% gain on the day.
Prior to today's trading, shares of the digital pinboard and shopping tool company had lost 2.98% over the past month. This has lagged the Computer and Technology sector's gain of 1.96% and the S&P 500's loss of 0.37% in that time.
Investors will be hoping for strength from PINS as it approaches its next earnings release. The company is expected to report EPS of $0.24, up 84.62% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $627.57 million, up 41.79% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.09 per share and revenue of $2.65 billion. These totals would mark changes of +159.52% and +56.27%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PINS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. PINS is currently a Zacks Rank #2 (Buy).
Digging into valuation, PINS currently has a Forward P/E ratio of 49.78. This valuation marks a discount compared to its industry's average Forward P/E of 59.7.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% 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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