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Here's Why Pinterest (PINS) Fell More Than Broader Market
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Pinterest (PINS - Free Report) closed the latest trading day at $35.86, indicating a -0.97% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.8%. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 1.18%.
Shares of the digital pinboard and shopping tool company witnessed a gain of 6.16% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.11% and the S&P 500's gain of 3.4%.
The investment community will be closely monitoring the performance of Pinterest in its forthcoming earnings report. The company is forecasted to report an EPS of $0.51, showcasing a 75.86% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $988.62 million, up 12.7% from the prior-year quarter.
Investors should also take note of any recent adjustments to analyst estimates for Pinterest. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. The Zacks Consensus EPS estimate has moved 0.71% higher within the past month. Right now, Pinterest possesses a Zacks Rank of #3 (Hold).
Investors should also note Pinterest's current valuation metrics, including its Forward P/E ratio of 27.98. For comparison, its industry has an average Forward P/E of 34.25, which means Pinterest is trading at a discount to the group.
Meanwhile, PINS's PEG ratio is currently 0.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.65 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 33, positioning it in the top 14% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Here's Why Pinterest (PINS) Fell More Than Broader Market
Pinterest (PINS - Free Report) closed the latest trading day at $35.86, indicating a -0.97% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.8%. At the same time, the Dow lost 0.76%, and the tech-heavy Nasdaq lost 1.18%.
Shares of the digital pinboard and shopping tool company witnessed a gain of 6.16% over the previous month, beating the performance of the Computer and Technology sector with its gain of 2.11% and the S&P 500's gain of 3.4%.
The investment community will be closely monitoring the performance of Pinterest in its forthcoming earnings report. The company is forecasted to report an EPS of $0.51, showcasing a 75.86% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $988.62 million, up 12.7% from the prior-year quarter.
Investors should also take note of any recent adjustments to analyst estimates for Pinterest. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. The Zacks Consensus EPS estimate has moved 0.71% higher within the past month. Right now, Pinterest possesses a Zacks Rank of #3 (Hold).
Investors should also note Pinterest's current valuation metrics, including its Forward P/E ratio of 27.98. For comparison, its industry has an average Forward P/E of 34.25, which means Pinterest is trading at a discount to the group.
Meanwhile, PINS's PEG ratio is currently 0.78. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Software industry stood at 1.65 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 33, positioning it in the top 14% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.