In the latest close session, Pinterest (PINS) was up +1.49% at $18.73. The stock's performance was ahead of the S&P 500's daily loss of 0.03%. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq increased by 0.01%.
Heading into today, shares of the digital pinboard and shopping tool company had lost 20.85% over the past month, lagging the Computer and Technology sector's gain of 5.26% and the S&P 500's gain of 0.53%.
Investors will be eagerly watching for the performance of Pinterest in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.5, indicating a 31.58% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 14.42% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.06 per share and revenue of $4.89 billion, which would represent changes of +28.75% and +15.93%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Pinterest. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 has moved 6.33% lower within the past month. At present, Pinterest boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Pinterest has a Forward P/E ratio of 8.97 right now. This valuation marks a discount compared to its industry average Forward P/E of 19.86.
Investors should also note that PINS has a PEG ratio of 0.34 right now. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.15.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 94, this industry ranks in the top 39% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Pinterest, Inc. (PINS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).