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Pinterest (PINS) Laps the Stock Market: Here's Why

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Pinterest (PINS - Free Report) closed the most recent trading day at $32.02, moving +0.72% from the previous trading session. This change outpaced the S&P 500's 0.41% gain on the day. At the same time, the Dow added 0.69%, and the tech-heavy Nasdaq gained 0.8%.

Prior to today's trading, shares of the digital pinboard and shopping tool company had lost 2.99% over the past month. This has lagged the Computer and Technology sector's loss of 0.01% and the S&P 500's loss of 0.97% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Pinterest in its upcoming earnings disclosure. The company's earnings report is set to go public on November 7, 2024. The company's upcoming EPS is projected at $0.34, signifying a 21.43% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $897.07 million, up 17.54% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.44 per share and revenue of $3.64 billion, indicating changes of +32.11% and +19.17%, respectively, compared to the previous year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Pinterest. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Pinterest is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Pinterest currently has a Forward P/E ratio of 22.14. This expresses a discount compared to the average Forward P/E of 30.5 of its industry.

Investors should also note that PINS has a PEG ratio of 0.67 right now. 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. The Internet - Software industry had an average PEG ratio of 2.28 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 83, finds itself in the top 33% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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