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Pinterest (PINS) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Pinterest (PINS) closed at $36.59, marking a -1.45% move from the previous day. This change lagged the S&P 500's daily loss of 0.84%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 1.27%.

Coming into today, shares of the digital pinboard and shopping tool company had gained 7.53% in the past month. In that same time, the Computer and Technology sector gained 0.69%, while the S&P 500 gained 0.6%.

PINS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.03, up 200% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $356.50 million, up 27.46% from the year-ago period.

Investors should also note any recent changes to analyst estimates for PINS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PINS is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, PINS is currently trading at a Forward P/E ratio of 742.6. For comparison, its industry has an average Forward P/E of 81.06, which means PINS is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 30% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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