Pinterest (PINS) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest market close, Pinterest (PINS) reached $36.40, with a -0.82% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.8%. Meanwhile, the Dow experienced a rise of 0.23%, and the technology-dominated Nasdaq saw an increase of 1.14%.
The digital pinboard and shopping tool company's stock has dropped by 2.34% in the past month, falling short of the Computer and Technology sector's gain of 5.97% and the S&P 500's gain of 5.2%.
Investors will be eagerly watching for the performance of Pinterest in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.14, showcasing a 75% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $699.43 million, indicating a 16.07% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.33 per share and a revenue of $3.58 billion, indicating changes of +22.02% and +17.34%, respectively, from the former year.
Any recent changes to analyst estimates for Pinterest should also be noted by investors. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 29.1% higher. As of now, Pinterest holds a Zacks Rank of #2 (Buy).
Digging into valuation, Pinterest currently has a Forward P/E ratio of 27.59. This expresses a discount compared to the average Forward P/E of 31.78 of its industry.
Also, we should mention that PINS has a PEG ratio of 1.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.86.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 61, finds itself in the top 25% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Pinterest, Inc. (PINS) : Free Stock Analysis Report
