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Why the Market Dipped But Pinterest (PINS) Gained Today
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Pinterest (PINS - Free Report) closed at $20.53 in the latest trading session, marking a +1.08% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 1.25%.
Shares of the digital pinboard and shopping tool company witnessed a gain of 11.1% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.08%, and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of Pinterest in its upcoming release. The company's earnings per share (EPS) are projected to be $0.5, reflecting a 31.58% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.2 billion, indicating a 14.42% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.06 per share and revenue of $4.89 billion. These totals would mark changes of +28.75% and +15.93%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Pinterest. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Pinterest holds a Zacks Rank of #4 (Sell).
Digging into valuation, Pinterest currently has a Forward P/E ratio of 9.87. This expresses a discount compared to the average Forward P/E of 20.39 of its industry.
We can also see that PINS currently has a PEG ratio of 0.37. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.19.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 42% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.
View the Zacks #1 Rank List
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Why the Market Dipped But Pinterest (PINS) Gained Today
Pinterest (PINS - Free Report) closed at $20.53 in the latest trading session, marking a +1.08% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 1.25%.
Shares of the digital pinboard and shopping tool company witnessed a gain of 11.1% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.08%, and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of Pinterest in its upcoming release. The company's earnings per share (EPS) are projected to be $0.5, reflecting a 31.58% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.2 billion, indicating a 14.42% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.06 per share and revenue of $4.89 billion. These totals would mark changes of +28.75% and +15.93%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Pinterest. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Pinterest holds a Zacks Rank of #4 (Sell).
Digging into valuation, Pinterest currently has a Forward P/E ratio of 9.87. This expresses a discount compared to the average Forward P/E of 20.39 of its industry.
We can also see that PINS currently has a PEG ratio of 0.37. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.19.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 42% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.