Pinterest (PINS) ended the recent trading session at $20.21, demonstrating a -6% change from the preceding day's closing price. This change lagged the S&P 500's 0.5% gain on the day. Elsewhere, the Dow saw an upswing of 0.7%, while the tech-heavy Nasdaq appreciated by 0.31%.
The digital pinboard and shopping tool company's shares have seen an increase of 12.98% over the last month, surpassing the Computer and Technology sector's loss of 0.42% and the S&P 500's loss of 0.23%.
The investment community will be closely monitoring the performance of Pinterest in its forthcoming earnings report. The company is predicted to post an EPS of $0.36, indicating a 9.09% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.15 billion, showing a 15.34% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.93 per share and revenue of $4.86 billion. These totals would mark changes of +20.63% and +15.03%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Pinterest. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 0.15% higher within the past month. At present, Pinterest boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Pinterest is currently trading at a Forward P/E ratio of 11.12. This indicates a discount in contrast to its industry's Forward P/E of 18.49.
One should further note that PINS currently holds a PEG ratio of 0.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.01.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 35% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Pinterest, Inc. (PINS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).