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Pinterest (PINS) Outpaces Stock Market Gains: What You Should Know
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Pinterest (PINS - Free Report) closed at $24.44 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the digital pinboard and shopping tool company had gained 1.55% in the past month. In that same time, the Computer and Technology sector lost 5.51%, while the S&P 500 lost 3.6%.
Wall Street will be looking for positivity from Pinterest as it approaches its next earnings report date. On that day, Pinterest is projected to report earnings of $0.28 per share, which would represent a year-over-year decline of 42.86%. Meanwhile, our latest consensus estimate is calling for revenue of $883.86 million, up 4.39% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.59 per share and revenue of $2.81 billion. These totals would mark changes of -47.79% and +8.97%, respectively, from last year.
It is also important to note the recent changes to analyst estimates 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.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Pinterest is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Pinterest has a Forward P/E ratio of 40.79 right now. This valuation marks a discount compared to its industry's average Forward P/E of 44.43.
Meanwhile, PINS's PEG ratio is currently 2.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.1 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 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PINS in the coming trading sessions, be sure to utilize Zacks.com.
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Pinterest (PINS) Outpaces Stock Market Gains: What You Should Know
Pinterest (PINS - Free Report) closed at $24.44 in the latest trading session, marking a +1.12% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the digital pinboard and shopping tool company had gained 1.55% in the past month. In that same time, the Computer and Technology sector lost 5.51%, while the S&P 500 lost 3.6%.
Wall Street will be looking for positivity from Pinterest as it approaches its next earnings report date. On that day, Pinterest is projected to report earnings of $0.28 per share, which would represent a year-over-year decline of 42.86%. Meanwhile, our latest consensus estimate is calling for revenue of $883.86 million, up 4.39% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.59 per share and revenue of $2.81 billion. These totals would mark changes of -47.79% and +8.97%, respectively, from last year.
It is also important to note the recent changes to analyst estimates 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.
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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Pinterest is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Pinterest has a Forward P/E ratio of 40.79 right now. This valuation marks a discount compared to its industry's average Forward P/E of 44.43.
Meanwhile, PINS's PEG ratio is currently 2.75. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.1 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 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PINS in the coming trading sessions, be sure to utilize Zacks.com.