Pinterest (PINS) Stock Sinks As Market Gains: Here's Why
In the latest market close, Pinterest (PINS) reached $34.88, with a -1.77% movement compared to the previous day. This change lagged the S&P 500's 0.86% gain on the day. At the same time, the Dow added 1.22%, and the tech-heavy Nasdaq gained 0.51%.
The digital pinboard and shopping tool company's shares have seen a decrease of 1.58% over the last month, not keeping up with the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 2.84%.
Investors will be eagerly watching for the performance of Pinterest in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.14, indicating a 75% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $699.44 million, up 16.07% from the year-ago period.
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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Pinterest. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 3.81% rise in the Zacks Consensus EPS estimate. Right now, Pinterest possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Pinterest has a Forward P/E ratio of 26.56 right now. Its industry sports an average Forward P/E of 30.17, so one might conclude that Pinterest is trading at a discount comparatively.
It's also important to note that PINS currently trades at a PEG ratio of 1.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.85.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 40, positioning it in the top 16% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Pinterest, Inc. (PINS) : Free Stock Analysis Report
