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Pinterest (PINS) Stock Falls Amid Market Uptick: What Investors Need to Know

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Pinterest (PINS - Free Report) closed the most recent trading day at $26.80, moving -2.51% from the previous trading session. This change lagged the S&P 500's daily gain of 0.01%. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq decreased by 0.44%.

The stock of digital pinboard and shopping tool company has fallen by 1.08% in the past month, lagging the Computer and Technology sector's loss of 0.69% and the S&P 500's gain of 0.86%.

Analysts and investors alike will be keeping a close eye on the performance of Pinterest in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.68, marking a 21.43% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.33 billion, indicating a 15.15% upward movement from the same quarter last year.

PINS's full-year Zacks Consensus Estimates are calling for earnings of $1.62 per share and revenue of $4.23 billion. These results would represent year-over-year changes of +25.58% and 0%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Pinterest. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.99% upward. Pinterest presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Pinterest is presently being traded at a Forward P/E ratio of 14.59. This valuation marks a discount compared to its industry average Forward P/E of 25.1.

Meanwhile, PINS's PEG ratio is currently 0.53. 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 currently had an average PEG ratio of 1.61 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 55, placing it within the top 23% of over 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.

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


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