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Why the Market Dipped But Pinterest (PINS) Gained Today

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Pinterest (PINS - Free Report) ended the recent trading session at $28, demonstrating a +1.78% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.01%. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.25%.

The the stock of digital pinboard and shopping tool company has risen by 8.31% in the past month, leading the Computer and Technology sector's loss of 0.05% and the S&P 500's loss of 1.6%.

The investment community will be closely monitoring the performance of Pinterest in its forthcoming earnings report. The company is scheduled to release its earnings on October 30, 2023. In that report, analysts expect Pinterest to post earnings of $0.21 per share. This would mark year-over-year growth of 90.91%. At the same time, our most recent consensus estimate is projecting a revenue of $742.3 million, reflecting an 8.44% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.96 per share and revenue of $3.04 billion, indicating changes of +54.84% and +8.3%, respectively, compared to the previous year.

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 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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 50% rise in the Zacks Consensus EPS estimate. Currently, Pinterest is carrying a Zacks Rank of #1 (Strong Buy).

In the context of valuation, Pinterest is at present trading with a Forward P/E ratio of 28.54. Its industry sports an average Forward P/E of 36.85, so one might conclude that Pinterest is trading at a discount comparatively.

One should further note that PINS currently holds a PEG ratio of 0.9. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.52.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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