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Pinterest (PINS) Stock Drops Despite Market Gains: Important Facts to Note
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Pinterest (PINS - Free Report) closed at $37.76 in the latest trading session, marking a -0.08% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.57% for the day. At the same time, the Dow added 0.46%, and the tech-heavy Nasdaq gained 0.75%.
Shares of the digital pinboard and shopping tool company witnessed a gain of 4.59% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.51% and the S&P 500's gain of 3.4%.
Analysts and investors alike will be keeping a close eye on the performance of Pinterest in its upcoming earnings disclosure. The company is expected to report EPS of $0.51, up 75.86% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $988.62 million, indicating a 12.7% growth compared to the corresponding quarter of the prior 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. Hence, positive alterations in estimates signify analyst optimism regarding 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.71% higher. Right now, Pinterest possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Pinterest is currently being traded at a Forward P/E ratio of 29.2. This represents a discount compared to its industry's average Forward P/E of 34.02.
It's also important to note that PINS currently trades at a PEG ratio of 0.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. 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 29, positioning it in the top 12% 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.
To follow PINS in the coming trading sessions, be sure to utilize Zacks.com.
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Pinterest (PINS) Stock Drops Despite Market Gains: Important Facts to Note
Pinterest (PINS - Free Report) closed at $37.76 in the latest trading session, marking a -0.08% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.57% for the day. At the same time, the Dow added 0.46%, and the tech-heavy Nasdaq gained 0.75%.
Shares of the digital pinboard and shopping tool company witnessed a gain of 4.59% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.51% and the S&P 500's gain of 3.4%.
Analysts and investors alike will be keeping a close eye on the performance of Pinterest in its upcoming earnings disclosure. The company is expected to report EPS of $0.51, up 75.86% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $988.62 million, indicating a 12.7% growth compared to the corresponding quarter of the prior 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. Hence, positive alterations in estimates signify analyst optimism regarding 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.71% higher. Right now, Pinterest possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Pinterest is currently being traded at a Forward P/E ratio of 29.2. This represents a discount compared to its industry's average Forward P/E of 34.02.
It's also important to note that PINS currently trades at a PEG ratio of 0.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. 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 29, positioning it in the top 12% 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.
To follow PINS in the coming trading sessions, be sure to utilize Zacks.com.