Pinterest (PINS) Stock Drops Despite Market Gains: Important Facts to Note

The most recent trading session ended with Pinterest (PINS) standing at $34.28, reflecting a -1.12% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 1.11%. Meanwhile, the Dow experienced a rise of 0.8%, and the technology-dominated Nasdaq saw an increase of 1.24%.

Coming into today, shares of the digital pinboard and shopping tool company had lost 2.39% in the past month. In that same time, the Computer and Technology sector gained 0.85%, while the S&P 500 gained 0.48%.

The investment community will be closely monitoring the performance of Pinterest in its forthcoming earnings report. The company is forecasted to report an EPS of $0.14, showcasing a 75% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $699.44 million, indicating a 16.07% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.34 per share and a revenue of $3.58 billion, representing changes of +22.94% and +17.32%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Pinterest. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Pinterest is currently a Zacks Rank #2 (Buy).

Looking at its valuation, Pinterest is holding a Forward P/E ratio of 25.93. For comparison, its industry has an average Forward P/E of 28.08, which means Pinterest is trading at a discount to the group.

We can additionally observe that PINS currently boasts a PEG ratio of 1.29. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.85 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 34, putting it in the top 14% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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Pinterest, Inc. (PINS) : Free Stock Analysis Report

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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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