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Why Pinterest (PINS) Dipped More Than Broader Market Today

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Pinterest (PINS - Free Report) ended the recent trading session at $22.54, demonstrating a -3.74% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.01%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 0.17%.

Coming into today, shares of the digital pinboard and shopping tool company had lost 10.07% in the past month. In that same time, the Computer and Technology sector gained 1.46%, while the S&P 500 gained 0.78%.

The upcoming earnings release of Pinterest will be of great interest to investors. The company's earnings report is expected on February 12, 2026. It is anticipated that the company will report an EPS of $0.67, marking a 19.64% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.33 billion, indicating a 15.16% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.62 per share and a revenue of $4.23 billion, indicating changes of +25.58% and 0%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Pinterest. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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.

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. The Zacks Consensus EPS estimate has moved 3.65% lower within the past month. Currently, Pinterest is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, Pinterest is presently trading at a Forward P/E ratio of 12.6. This represents a discount compared to its industry average Forward P/E of 23.28.

We can additionally observe that PINS currently boasts a PEG ratio of 0.46. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.37.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the 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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