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Pinterest (PINS) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Pinterest (PINS - Free Report) closed at $23.69, marking a -1.99% move from the previous day. This move lagged the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.28%, while the tech-heavy Nasdaq added 3.16%.
Heading into today, shares of the digital pinboard and shopping tool company had lost 2.7% over the past month, outpacing the Computer and Technology sector's loss of 3.13% and the S&P 500's loss of 5.39% in that time.
Pinterest will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0, down 100% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $595.34 million, up 3.56% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.75 per share and revenue of $3.09 billion. These totals would mark changes of +20.97% and +10.1%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Pinterest. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Pinterest is currently a Zacks Rank #3 (Hold).
Investors should also note Pinterest's current valuation metrics, including its Forward P/E ratio of 32.06. This represents a discount compared to its industry's average Forward P/E of 37.77.
We can also see that PINS currently has a PEG ratio of 1.52. 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 1.62 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.