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Pinterest (PINS) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Pinterest (PINS - Free Report) closed at $26.60, marking a -0.64% move from the previous day. This change lagged the S&P 500's 1.89% gain on the day. Elsewhere, the Dow gained 1%, while the tech-heavy Nasdaq added 10%.
Prior to today's trading, shares of the digital pinboard and shopping tool company had gained 8.29% over the past month. This has outpaced the Computer and Technology sector's gain of 4.01% and the S&P 500's gain of 2.3% in that time.
Investors will be hoping for strength from Pinterest as it approaches 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.
Any recent changes to analyst estimates for Pinterest should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Pinterest currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Pinterest is currently trading at a Forward P/E ratio of 36.05. This valuation marks a discount compared to its industry's average Forward P/E of 39.92.
Meanwhile, PINS's PEG ratio is currently 2.43. 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 2.13 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 55, putting it in the top 22% 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 Zacks.com.