The most recent trading session ended with Pinterest (PINS) standing at $35.13, reflecting a -0.54% change from the previous trading day’s close. This change was narrower than the S&P 500’s 0.72% loss on the day. At the same time, the Dow lost 1%, and the tech-heavy Nasdaq lost 0.95%.
Shares of the digital whiteboard and business tools company have seen a decline of 2.97% over the past month, not consistently with the Computer & Technology sector’s gain of 2.34% and the S&P 500’s gain of 2.16% .
The investment community will be paying close attention to Pinterest’s earnings performance in its next release. The company is expected to post EPS of $0.14, indicating growth of 75% compared to the corresponding quarter last year. Meanwhile, our latest consensus estimate calls for revenue of $699.44 million, up 16.07% from the previous quarter.
For the full fiscal year, the Zacks Consensus Estimates forecast earnings of $1.34 per share and revenue of $3.58 billion, representing changes of +22.94% and +17.32%, respectively, from the previous year.
It’s also important to note the recent changes to analyst ratings for Pinterest. These revisions usually reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive rating reviews as a good sign for the company’s business outlook.
Our research reveals that these valuation changes are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these rating changes into account and delivers a clear, reasonable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, unverified track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days out, our consensus EPS projection has remained stagnant. Currently, Pinterest boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, Pinterest currently trades hands with a Forward P/E ratio of 26.42. Its industry has an average Forward P/E of 29.23, so one could conclude that Pinterest trades at a discount in comparison.
We can additionally observe that PINS currently boasts a PEG ratio of 1.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth. The Internet – Software industry had an average PEG ratio of 1.92 as trading ended yesterday.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 34, which places it in the top 14% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst based on the average Zacks Rank of the individual companies in each of these sectors. 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 of these stock-impacting metrics, and more, during the upcoming trading sessions.
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Pinterest, Inc. (PINS): Free Analysis Report
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