Pinterest (PINS) Rises As Market Takes a Dip: Key Facts

Nov 06, 2024

The most recent trading session ended with Pinterest (PINS) standing at $32.35, reflecting a +1.63% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 0.03%. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq appreciated by 0.56%.

Shares of the digital pinboard and shopping tool company witnessed a loss of 2.72% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.65% and the S&P 500's gain of 1.39%.

Market participants will be closely following the financial results of Pinterest in its upcoming release. The company plans to announce its earnings on November 7, 2024. On that day, Pinterest is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 21.43%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $897.07 million, up 17.54% from the year-ago period.

PINS's full-year Zacks Consensus Estimates are calling for earnings of $1.44 per share and revenue of $3.64 billion. These results would represent year-over-year changes of +32.11% and +19.17%, respectively.

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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Pinterest is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Pinterest has a Forward P/E ratio of 22.17 right now. This valuation marks a discount compared to its industry's average Forward P/E of 32.9.

It is also worth noting that PINS currently has a PEG ratio of 0.67. 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. The Internet - Software industry had an average PEG ratio of 2.07 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 28% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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