In the latest close session, Pinterest (PINS) was down 8.91% at $18.35. The stock’s performance was behind the S&P 500’s daily loss of 0.48%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Coming into today, shares of the digital pinboard and shopping tool company had lost 15.2% in the past month. In that same time, the Computer and Technology sector gained 0.4%, while the S&P 500 lost 0.97%.
The investment community will be closely monitoring the performance of Pinterest in its forthcoming earnings report. The company is expected to report EPS of $0.49, up 28.95% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $1.2 billion, indicating a 14.35% 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 +15.9%, respectively, from last year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Pinterest. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.33% lower. At present, Pinterest boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Pinterest is at present trading with a Forward P/E ratio of 9.79. This expresses a discount compared to the average Forward P/E of 20.07 of its industry.
We can additionally observe that PINS currently boasts a PEG ratio of 0.37. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Internet – Software was holding an average PEG ratio of 1.07 at yesterday’s closing price.
The Internet – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 35% echelons of all 250+ industries.
