Strength Seen in Pinterest (PINS): Can Its 11.9% Jump Turn into More Strength?
Pinterest (PINS) shares ended the last trading session 11.9% higher at $26.42. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 3.3% loss over the past four weeks.
Pinterest is increasingly establishing a unique value proposition to advertisers that could provide a competitive advantage in the long haul. Through various innovations, it continues to dramatically improve the advertising platform, which presently appears to be one of the best ad platforms for consumer discretionary brands looking for new ways to reach customers and stretch smaller ad budgets.
Pinterest’s Verified Merchants Program allows brands to create a catalog of shoppable products on the app and use special re-targeting capabilities in their ads. Industry experts believe that the company is well positioned to continue its growth momentum in 2023 with a comprehensive portfolio, which buoyed the stock prices.
This digital pinboard and shopping tool company is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of -42.9%. Revenues are expected to be $883.86 million, up 4.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Pinterest, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PINS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Pinterest is part of the Zacks Internet - Software industry. Snap (SNAP), another stock in the same industry, closed the last trading session 0.5% lower at $9.41. SNAP has returned -16.2% in the past month.
Snap's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.10. Compared to the company's year-ago EPS, this represents a change of -54.6%. Snap currently boasts a Zacks Rank of #3 (Hold).
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Pinterest, Inc. (PINS) : Free Stock Analysis Report
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