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Pinterest (PINS) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Pinterest (PINS - Free Report) closed at $21.76, marking a -2.73% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.11%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 1.88%.
The digital pinboard and shopping tool company's stock has climbed by 19.24% in the past month, exceeding the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
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%. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, up 14.42% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.06 per share and a revenue of $4.89 billion, indicating changes of +28.75% and +15.93%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Pinterest. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Pinterest currently has a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Pinterest is presently trading at a Forward P/E ratio of 10.87. This signifies a discount in comparison to the average Forward P/E of 20.8 for its industry.
It's also important to note that PINS currently trades at a PEG ratio of 0.41. 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. The Internet - Software industry currently had an average PEG ratio of 1.19 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Pinterest (PINS) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Pinterest (PINS - Free Report) closed at $21.76, marking a -2.73% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.11%. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 1.88%.
The digital pinboard and shopping tool company's stock has climbed by 19.24% in the past month, exceeding the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
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%. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, up 14.42% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.06 per share and a revenue of $4.89 billion, indicating changes of +28.75% and +15.93%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Pinterest. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Pinterest currently has a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Pinterest is presently trading at a Forward P/E ratio of 10.87. This signifies a discount in comparison to the average Forward P/E of 20.8 for its industry.
It's also important to note that PINS currently trades at a PEG ratio of 0.41. 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. The Internet - Software industry currently had an average PEG ratio of 1.19 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.