Why Pinterest (PINS) Outpaced the Stock Market Today

In the latest trading session, Pinterest (PINS) closed at $38.04, marking a +0.9% move from the previous day. This change outpaced the S&P 500's 0.59% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.66%.

Shares of the digital pinboard and shopping tool company witnessed a gain of 17.34% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.11% and the S&P 500's gain of 5.16%.

Investors will be eagerly watching for the performance of Pinterest in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.51, indicating a 75.86% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $988.09 million, indicating a 12.64% upward movement from the same quarter last year.

PINS's full-year Zacks Consensus Estimates are calling for earnings of $1.07 per share and revenue of $3.06 billion. These results would represent year-over-year changes of +72.58% and +9.15%, respectively.

Investors might also notice recent changes to analyst estimates for Pinterest. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, there's been a 1.54% rise in the Zacks Consensus EPS estimate. Pinterest currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Pinterest has a Forward P/E ratio of 35.23 right now. This represents a discount compared to its industry's average Forward P/E of 39.68.

One should further note that PINS currently holds a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.8.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 28, putting it in the top 12% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.