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Pinterest (PINS) Gains As Market Dips: What You Should Know

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Pinterest (PINS) closed the most recent trading day at $19.96, moving +1.32% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.07%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.02%.

Coming into today, shares of the digital pinboard and shopping tool company had gained 0.25% in the past month. In that same time, the Computer and Technology sector lost 7.26%, while the S&P 500 lost 7.99%.

Wall Street will be looking for positivity from Pinterest as it approaches its next earnings report date. The company is expected to report EPS of $0.18, down 28% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $674.06 million, up 9.92% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.92 per share and revenue of $3.04 billion. These totals would mark changes of -18.58% and +17.73%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Pinterest. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.96% higher. Pinterest currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Pinterest is currently trading at a Forward P/E ratio of 21.35. This valuation marks a discount compared to its industry's average Forward P/E of 42.41.

Meanwhile, PINS's PEG ratio is currently 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.42 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PINS in the coming trading sessions, be sure to utilize Zacks.com.


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