Pinterest (PINS) closed the most recent trading day at $23.61, moving +1.94% from the previous trading session. This change outpaced the S&P 500’s 1.43% gain on the day. Elsewhere, the Dow gained 1.58%, while the tech-heavy Nasdaq added 0.03%.
Heading into today, shares of the digital pinboard and shopping tool company had lost 4.3% over the past month, lagging the Computer and Technology sector’s gain of 8.36% and the S&P 500’s gain of 5.12% in that time.
Wall Street will be looking for positivity from Pinterest as it approaches its next earnings report date. The company is expected to report EPS of $0.24, down 51.02% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $883.86 million, up 4.39% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.59 per share and revenue of $2.81 billion, which would represent changes of -47.79% and +8.97%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Pinterest. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Pinterest is currently a Zacks Rank #3 (Hold).
In terms of valuation, Pinterest is currently trading at a Forward P/E ratio of 39.09. For comparison, its industry has an average Forward P/E of 45.78, which means Pinterest is trading at a discount to the group.
Meanwhile, PINS’s PEG ratio is currently 2.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. PINS’s industry had an average PEG ratio of 2.14 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Pinterest, Inc. (PINS) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
