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

Zacks Equity Research

Pinterest (PINS) closed at $34.11 in the latest trading session, marking a -1.67% move from the prior day. This move lagged the S&P 500's daily gain of 0.05%. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq lost 0.61%.

Coming into today, shares of the digital pinboard and shopping tool company had lost 0.49% in the past month. In that same time, the Computer and Technology sector gained 0.29%, while the S&P 500 lost 0.52%.

PINS will be looking to display strength as it nears its next earnings release. On that day, PINS is projected to report earnings of $0.03 per share, which would represent year-over-year growth of 200%. Meanwhile, our latest consensus estimate is calling for revenue of $356.50 million, up 27.46% from the prior-year quarter.

Any recent changes to analyst estimates for PINS should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PINS currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that PINS has a Forward P/E ratio of 693.8 right now. Its industry sports an average Forward P/E of 81.98, 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 170, which puts it in the bottom 34% 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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