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Pinterest (PINS) Outperforms Broader Market: What You Need to Know

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In the latest close session, Pinterest (PINS - Free Report) was up +1.27% at $31.79. This move outpaced the S&P 500's daily gain of 0.58%.

Prior to today's trading, shares of the digital pinboard and shopping tool company had lost 14% lagged the Computer and Technology sector's gain of 6.37% and the S&P 500's gain of 3.68%.

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 $0.42, showcasing a 5% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.05 billion, up 16.56% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.72 per share and revenue of $4.22 billion, indicating changes of +33.33% and +15.83%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Pinterest. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Pinterest holds a Zacks Rank of #2 (Buy).

Looking at its valuation, Pinterest is holding a Forward P/E ratio of 18.2. This denotes a discount relative to the industry average Forward P/E of 29.68.

We can also see that PINS currently has a PEG ratio of 0.54. 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 Internet - Software industry currently had an average PEG ratio of 2.22 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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