Yahoo Finance Pinterest (PINS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Pinterest (PINS) closed at $37.26, marking a +1.42% move from the previous day. The stock outpaced the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq lost 0.4%.
Prior to today's trading, shares of the digital pinboard and shopping tool company had lost 12.04% over the past month. This has lagged the Computer and Technology sector's loss of 3.79% and the S&P 500's loss of 0.91% in that time.
Pinterest will be looking to display strength as it nears its next earnings release. In that report, analysts expect Pinterest to post earnings of $0.48 per share. This would mark year-over-year growth of 11.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $833.34 million, up 18.1% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.10 per share and revenue of $2.56 billion. These totals would mark changes of +161.9% and +51.5%, respectively, from last year.
Investors might also notice 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Pinterest currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Pinterest is currently trading at a Forward P/E ratio of 33.3. For comparison, its industry has an average Forward P/E of 63.82, which means Pinterest is trading at a discount to the group.
Investors should also note that PINS has a PEG ratio of 0.63 right now. 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 3.75 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 189, putting it in the bottom 26% 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.
To follow PINS in the coming trading sessions, be sure to utilize Zacks.com.
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