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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 $72.51, moving +1.67% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.93%.

Coming into today, shares of the digital pinboard and shopping tool company had gained 2.16% in the past month. In that same time, the Computer and Technology sector gained 8.56%, while the S&P 500 gained 5.84%.

Investors will be hoping for strength from PINS as it approaches its next earnings release, which is expected to be April 27, 2021. The company is expected to report EPS of $0.07, up 170% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $467.87 million, up 72.05% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.74 per share and revenue of $2.47 billion. These totals would mark changes of +76.19% and +46.15%, respectively, from last year.

Any recent changes to analyst estimates for PINS should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. PINS is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, PINS is currently trading at a Forward P/E ratio of 99.54. Its industry sports an average Forward P/E of 76.52, 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 185, which puts it in the bottom 28% 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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