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Pinterest (PINS) Outpaces Stock Market Gains: What You Should Know

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Pinterest (PINS - Free Report) closed the most recent trading day at $72.99, moving +0.88% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.08%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, lost 0.29%.

Prior to today's trading, shares of the digital pinboard and shopping tool company had gained 12.99% over the past month. This has outpaced the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 3.8% in that time.

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 $0.30 per share, which would represent year-over-year growth of 150%. Our most recent consensus estimate is calling for quarterly revenue of $641.95 million, up 60.53% from the year-ago period.

Any recent changes to analyst estimates for PINS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PINS is currently a Zacks Rank #2 (Buy).

Digging into valuation, PINS currently has a Forward P/E ratio of 233.39. Its industry sports an average Forward P/E of 88.82, so we one might conclude that PINS is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow PINS in the coming trading sessions, be sure to utilize Zacks.com.


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