Back to top

Image: Bigstock

Why Pinterest (PINS) Outpaced the Stock Market Today

Read MoreHide Full Article

Pinterest (PINS - Free Report) closed the latest trading day at $25.49, indicating a +0.67% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.63%. Elsewhere, the Dow gained 0.21%, while the tech-heavy Nasdaq added 1.52%.

Shares of the digital pinboard and shopping tool company witnessed a loss of 19.31% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.66% and the S&P 500's loss of 0.7%.

The upcoming earnings release of Pinterest will be of great interest to investors. The company's earnings report is expected on May 8, 2025. In that report, analysts expect Pinterest to post earnings of $0.25 per share. This would mark year-over-year growth of 25%. Our most recent consensus estimate is calling for quarterly revenue of $845.74 million, up 14.29% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $1.74 per share and a revenue of $4.12 billion, demonstrating changes of +34.88% and +12.91%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Pinterest. These revisions help to show the ever-changing nature of near-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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 9.01% lower within the past month. Pinterest is currently a Zacks Rank #3 (Hold).

Digging into valuation, Pinterest currently has a Forward P/E ratio of 14.59. This indicates a discount in contrast to its industry's Forward P/E of 26.31.

One should further note that PINS currently holds a PEG ratio of 0.46. 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 Internet - Software industry currently had an average PEG ratio of 2.16 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 141, this industry ranks in the bottom 43% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Pinterest, Inc. (PINS) - free report >>

Published in