Pinterest (PINS) Rises Higher Than Market: Key Facts

Oct 25, 2024

The latest trading session saw Pinterest (PINS) ending at $32.72, denoting a +1.77% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.6%.

The digital pinboard and shopping tool company's shares have seen an increase of 2.81% over the last month, surpassing the Computer and Technology sector's gain of 0.91% and the S&P 500's gain of 1.71%.

Investors will be eagerly watching for the performance of Pinterest in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.34, marking a 21.43% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $896.99 million, up 17.53% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.43 per share and revenue of $3.64 billion. These totals would mark changes of +31.19% and +19.15%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Pinterest. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. Right now, Pinterest possesses a Zacks Rank of #4 (Sell).

With respect to valuation, Pinterest is currently being traded at a Forward P/E ratio of 22.41. This indicates a discount in contrast to its industry's Forward P/E of 30.41.

We can additionally observe that PINS currently boasts a PEG ratio of 0.9. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.02.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 78, positioning it in the top 31% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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