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Pinterest (PINS) Gains But Lags Market: What You Should Know

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In the latest trading session, Pinterest (PINS - Free Report) closed at $44.04, marking a +1.5% move from the previous day. This change lagged the S&P 500's 1.64% gain on the day. Elsewhere, the Dow gained 0.88%, while the tech-heavy Nasdaq added 2.56%.

Coming into today, shares of the digital pinboard and shopping tool company had gained 25.08% in the past month. In that same time, the Computer and Technology sector gained 3.41%, while the S&P 500 gained 2.44%.

Investors will be hoping for strength from PINS as it approaches its next earnings release. On that day, PINS is projected to report earnings of $0.03 per share, which would represent year-over-year growth of 200%. Meanwhile, our latest consensus estimate is calling for revenue of $362.30 million, up 29.53% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for PINS. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PINS currently has a Zacks Rank of #3 (Hold).

Investors should also note PINS's current valuation metrics, including its Forward P/E ratio of 867.8. This valuation marks a premium compared to its industry's average Forward P/E of 84.56.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 34% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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