Pinterest (PINS) Suffers a Larger Drop Than the General Market: Key Insights

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Pinterest (PINS) Suffers a Larger Drop Than the General Market: Key Insights

Pinterest (PINS) closed at $23.09 in the latest trading session, marking a -2.49% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.51%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 1.47%.

Shares of the digital pinboard and shopping tool company witnessed a gain of 16.31% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.99%, 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's earnings report is set to be unveiled on August 4, 2026. The company's upcoming EPS is projected at $0.36, signifying a 9.09% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.15 billion, up 15.42% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.92 per share and a revenue of $4.85 billion, representing changes of +20% and +15%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Pinterest. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 1.32% rise in the Zacks Consensus EPS estimate. Pinterest is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Pinterest currently has a Forward P/E ratio of 12.32. This indicates a discount in contrast to its industry's Forward P/E of 20.31.

It is also worth noting that PINS currently has a PEG ratio of 0.46. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.07 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 89, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 follow all of these stock-moving metrics, and many more, on Zacks.com.

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Pinterest, Inc. (PINS): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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