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Pinterest (PINS) Stock Dips While Market Gains: Key Facts

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In the latest trading session, Pinterest (PINS - Free Report) closed at $19.21, marking a -1.31% move from the previous day. This move lagged the S&P 500's daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 1.19%.

The stock of digital pinboard and shopping tool company has fallen by 6.67% in the past month, lagging the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.

The upcoming earnings release of Pinterest will be of great interest to investors. On that day, Pinterest is projected to report earnings of $0.5 per share, which would represent year-over-year growth of 31.58%. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 14.42% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.06 per share and revenue of $4.89 billion, which would represent changes of +28.75% and +15.93%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Pinterest. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Pinterest holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Pinterest has a Forward P/E ratio of 9.46 right now. This denotes a discount relative to the industry average Forward P/E of 19.59.

Also, we should mention that PINS has a PEG ratio of 0.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 1.17 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 38% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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