Stocks

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

Pinterest (PINS) closed the most recent trading day at $56.88, moving -0.19% from the previous trading session. This change lagged the S&P 500's daily gain of 0.28%.

Heading into today, shares of the digital pinboard and shopping tool company had lost 5.22% over the past month, lagging the Computer and Technology sector's gain of 5.05% and the S&P 500's gain of 3.07% in that time.

PINS will be looking to display strength as it nears its next earnings release. On that day, PINS is projected to report earnings of $0.24 per share, which would represent year-over-year growth of 84.62%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $627.57 million, up 41.79% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.09 per share and revenue of $2.65 billion, which would represent changes of +159.52% and +56.27%, respectively, from the prior year.

It is also important to note the 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PINS is currently a Zacks Rank #2 (Buy).

Investors should also note PINS's current valuation metrics, including its Forward P/E ratio of 52.13. This valuation marks a discount compared to its industry's average Forward P/E of 56.47.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% 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.

You can find more information on all of these metrics, and much 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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