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Pinterest (PINS) Surpasses Market Returns: Some Facts Worth Knowing

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The latest trading session saw Pinterest (PINS - Free Report) ending at $26.39, denoting a +1.7% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.81%. At the same time, the Dow added 0.39%, and the tech-heavy Nasdaq gained 1.35%.

Coming into today, shares of the digital pinboard and shopping tool company had lost 9.83% in the past month. In that same time, the Computer and Technology sector lost 6.4%, while the S&P 500 lost 6.19%.

The investment community will be closely monitoring the performance of Pinterest in its forthcoming earnings report. In that report, analysts expect Pinterest to post earnings of $0.21 per share. This would mark year-over-year growth of 90.91%. Meanwhile, our latest consensus estimate is calling for revenue of $741 million, up 8.25% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $0.96 per share and a revenue of $3.03 billion, demonstrating changes of +54.84% and +8.2%, respectively, from the preceding year.

Any recent changes to analyst estimates for Pinterest should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Within the past 30 days, our consensus EPS projection has moved 25% higher. Pinterest is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note Pinterest's current valuation metrics, including its Forward P/E ratio of 26.98. This indicates a discount in contrast to its industry's Forward P/E of 35.93.

Also, we should mention that PINS has a PEG ratio of 0.85. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software was holding an average PEG ratio of 1.47 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.


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