Back to top

Image: Bigstock

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

Read MoreHide Full Article

Pinterest (PINS - Free Report) closed the most recent trading day at $18.42, moving +1.32% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.45%. At the same time, the Dow added 2.15%, and the tech-heavy Nasdaq gained 0.18%.

Coming into today, shares of the digital pinboard and shopping tool company had lost 19.52% in the past month. In that same time, the Computer and Technology sector lost 4.95%, while the S&P 500 lost 5.71%.

Investors will be hoping for strength from Pinterest as it approaches its next earnings release. The company is expected to report EPS of $0.18, down 28% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $674.06 million, up 9.92% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.92 per share and revenue of $3.04 billion, which would represent changes of -18.58% and +17.73%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Pinterest. 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. Within the past 30 days, our consensus EPS projection has moved 5.96% higher. Pinterest is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Pinterest is holding a Forward P/E ratio of 19.71. Its industry sports an average Forward P/E of 40.11, so we one might conclude that Pinterest is trading at a discount comparatively.

Also, we should mention that PINS has a PEG ratio of 1.33. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PINS's industry had an average PEG ratio of 2.22 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% 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.

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

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Pinterest, Inc. (PINS) - free report >>

Published in