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Pinterest (PINS) Stock Moves -0.8%: What You Should Know
Pinterest (PINS - Free Report) closed at $23.59 in the latest trading session, marking a -0.8% move from the prior day. This change was narrower than the S&P 500's 1.17% loss on the day. Elsewhere, the Dow lost 1.02%, while the tech-heavy Nasdaq lost 2.45%.
Coming into today, shares of the digital pinboard and shopping tool company had gained 4.85% in the past month. In that same time, the Computer and Technology sector lost 8.27%, while the S&P 500 lost 5.25%.
Investors will be hoping for strength from Pinterest as it approaches its next earnings release. The company is expected to report EPS of $0.28, down 42.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $883.86 million, up 4.39% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Pinterest. 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. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Pinterest is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Pinterest has a Forward P/E ratio of 32.03 right now. Its industry sports an average Forward P/E of 41.93, 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 2.16. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.83 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% 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.