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Chicago, IL – November 7, 2023 – Today, Zacks Investment Ideas feature highlights Pinterest (PINS - Free Report) .
Interest Returns in This Discovery Engine as Stock Hits 52-Week High
It’s been a wild ride for Pinterest investors. An initial public offering in 2019 was originally met with open arms, only to be followed by a more than 50% drop during the March 2020 pandemic-induced plunge. Shortly after, Pinterest became one of the ‘stay-at-home’ stocks, as the personal interest online platform soared to new heights over the following year.
Last year’s bear market reversed the bullish move once again, with PINS shares losing more than 80% of their value from peak to trough. But it appears the stock is now entering another upward phase after delivering stronger than expected third-quarter earnings along with upbeat guidance. The Zacks Rank #1 (Strong Buy) stock recently hit a 52-week high as buying pressure accumulates in this market leader.
The Zacks Rundown
Pinterest operates as a visual discovery engine in the United States and internationally. The company’s platform enables users to find visual recommendations (referred to as pins) such as recipes, home décor, and style inspiration, which they can then organize and save into collections (called boards).
Pinterest shows organic recommendations and advertising based on user tastes and preferences, arming users with shoppable product pins including price, color, and size that redirect to retailer websites. The company generates revenue by delivering ads on its website and mobile application.
San Francisco-based Pinterest is part of the Zacks Internet – Software industry group, which currently ranks in the top 24% out of all Zacks Ranked Industries. This group has handily outperformed the market this year with a 45% return.
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Earnings Trends and Future Estimates
Pinterest has built an impressive earnings history, surpassing earnings estimates in each of the last four quarters. Back in October, the company reported third-quarter earnings of $0.28/share, a 33.33% surprise over the $0.21/share consensus estimate. The introduction of AI-driven guided browsing and advancement in ad formats increased user engagement. The bottom line increased 154.5% relative to the year-ago quarter.
Net sales of $763.2 million were up from $684.6 million during last year’s third quarter. Pinterest witnessed 8% year-over-year growth in global monthly active users, reaching an all-time high of 482 million. The company has delivered a trailing four-quarter average earnings surprise of 37.3%.
Earnings estimates for Pinterest are on the rise. Analysts covering PINS are in agreement and have raised their full-year EPS estimates by 9.38% in the past 60 days. The 2023 Zacks Consensus Estimate now stands at $1.05/share, reflecting growth of 69.4% relative to last year.
Other Bullish Considerations
Collaborations with Adobe and Salesforce are expanding the company’s e-commerce ecosystem, helping to unlock new revenue opportunities. Pinterest has partnered with Amazon to further capitalize on the commercial intent of its user base and improve the shopping experience on its platform.
In addition, the acquisition of AI-powered, high tech shopping platform The Yes will allow Pinterest to create a strategic organization and help steer the evolution of its features and merchants. Pinterest and The Yes share a common vision of making it easy for customers to find products that match their tastes and style.
Pinterest boasts a strong balance sheet and generates significant cash flow. A solid liquidity position will enable the company to make further investments in product development and acquisitions in the future.
Bottom Line
Pinterest stock appears to be on the verge of another bull run. The company is ranked favorably by our Zacks Style Scores, with top marks in our Growth and Momentum categories. This indicates that further upside is likely based on favorable earnings and sales growth metrics.
The future looks bright for this highly-ranked, leading stock. PINS shares have soared more than 25% this year, and momentum has picked up in November as the market attempts to regain its footing.
Make sure you’re taking advantage of all that Zacks has to offer to uncover leading stocks like PINS.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Investment Ideas feature highlights: Pinterest
For Immediate Release
Chicago, IL – November 7, 2023 – Today, Zacks Investment Ideas feature highlights Pinterest (PINS - Free Report) .
Interest Returns in This Discovery Engine as Stock Hits 52-Week High
It’s been a wild ride for Pinterest investors. An initial public offering in 2019 was originally met with open arms, only to be followed by a more than 50% drop during the March 2020 pandemic-induced plunge. Shortly after, Pinterest became one of the ‘stay-at-home’ stocks, as the personal interest online platform soared to new heights over the following year.
Last year’s bear market reversed the bullish move once again, with PINS shares losing more than 80% of their value from peak to trough. But it appears the stock is now entering another upward phase after delivering stronger than expected third-quarter earnings along with upbeat guidance. The Zacks Rank #1 (Strong Buy) stock recently hit a 52-week high as buying pressure accumulates in this market leader.
The Zacks Rundown
Pinterest operates as a visual discovery engine in the United States and internationally. The company’s platform enables users to find visual recommendations (referred to as pins) such as recipes, home décor, and style inspiration, which they can then organize and save into collections (called boards).
Pinterest shows organic recommendations and advertising based on user tastes and preferences, arming users with shoppable product pins including price, color, and size that redirect to retailer websites. The company generates revenue by delivering ads on its website and mobile application.
San Francisco-based Pinterest is part of the Zacks Internet – Software industry group, which currently ranks in the top 24% out of all Zacks Ranked Industries. This group has handily outperformed the market this year with a 45% return.
Historical research studies suggest that approximately half of a stock’s price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. It’s no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top 50% of Zacks Ranked Industries, we can dramatically improve our stock-picking success.
Earnings Trends and Future Estimates
Pinterest has built an impressive earnings history, surpassing earnings estimates in each of the last four quarters. Back in October, the company reported third-quarter earnings of $0.28/share, a 33.33% surprise over the $0.21/share consensus estimate. The introduction of AI-driven guided browsing and advancement in ad formats increased user engagement. The bottom line increased 154.5% relative to the year-ago quarter.
Net sales of $763.2 million were up from $684.6 million during last year’s third quarter. Pinterest witnessed 8% year-over-year growth in global monthly active users, reaching an all-time high of 482 million. The company has delivered a trailing four-quarter average earnings surprise of 37.3%.
Earnings estimates for Pinterest are on the rise. Analysts covering PINS are in agreement and have raised their full-year EPS estimates by 9.38% in the past 60 days. The 2023 Zacks Consensus Estimate now stands at $1.05/share, reflecting growth of 69.4% relative to last year.
Other Bullish Considerations
Collaborations with Adobe and Salesforce are expanding the company’s e-commerce ecosystem, helping to unlock new revenue opportunities. Pinterest has partnered with Amazon to further capitalize on the commercial intent of its user base and improve the shopping experience on its platform.
In addition, the acquisition of AI-powered, high tech shopping platform The Yes will allow Pinterest to create a strategic organization and help steer the evolution of its features and merchants. Pinterest and The Yes share a common vision of making it easy for customers to find products that match their tastes and style.
Pinterest boasts a strong balance sheet and generates significant cash flow. A solid liquidity position will enable the company to make further investments in product development and acquisitions in the future.
Bottom Line
Pinterest stock appears to be on the verge of another bull run. The company is ranked favorably by our Zacks Style Scores, with top marks in our Growth and Momentum categories. This indicates that further upside is likely based on favorable earnings and sales growth metrics.
The future looks bright for this highly-ranked, leading stock. PINS shares have soared more than 25% this year, and momentum has picked up in November as the market attempts to regain its footing.
Make sure you’re taking advantage of all that Zacks has to offer to uncover leading stocks like PINS.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.