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

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In the latest trading session, Pinterest (PINS - Free Report) closed at $26.69, marking a +0.95% move from the previous day. This move outpaced the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.33%, and the tech-heavy Nasdaq lost 1.1%.

Coming into today, shares of the digital pinboard and shopping tool company had gained 5.09% in the past month. In that same time, the Computer and Technology sector lost 0.9%, while the S&P 500 lost 0.01%.

Investors will be hoping for strength from Pinterest as it approaches its next earnings release. In that report, analysts expect Pinterest to post earnings of $0.28 per share. This would mark 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.

Investors might also notice recent changes to analyst estimates for Pinterest. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Pinterest is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Pinterest's current valuation metrics, including its Forward P/E ratio of 35.61. For comparison, its industry has an average Forward P/E of 41.4, which means Pinterest is trading at a discount to the group.

Also, we should mention that PINS has a PEG ratio of 2.4. 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. PINS's industry had an average PEG ratio of 2.11 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 35, putting it in the top 14% 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

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