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Pinterest (PINS) Gains As Market Dips: What You Should Know
Pinterest (PINS - Free Report) closed the most recent trading day at $24.28, moving +1.93% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.25%. Elsewhere, the Dow lost 0.22%, while the tech-heavy Nasdaq added 5.91%.
Coming into today, shares of the digital pinboard and shopping tool company had lost 6.88% in the past month. In that same time, the Computer and Technology sector lost 3.63%, while the S&P 500 lost 2.59%.
Pinterest will be looking to display strength as it nears its next earnings release. On that day, Pinterest is projected to report earnings of $0.28 per share, which would represent a year-over-year decline of 42.86%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $883.86 million, up 4.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.59 per share and revenue of $2.81 billion. These totals would mark changes of -47.79% and +8.97%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Pinterest. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Pinterest currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Pinterest is holding a Forward P/E ratio of 40.2. Its industry sports an average Forward P/E of 47.4, so we one might conclude that Pinterest is trading at a discount comparatively.
We can also see that PINS currently has a PEG ratio of 2.71. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 61, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.