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

Pinterest (PINS) closed at $45.32 in the latest trading session, marking a -1.09% move from the prior day. This change lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 0.33%.

Heading into today, shares of the digital pinboard and shopping tool company had gained 24.27% over the past month, outpacing the Computer and Technology sector's gain of 6.61% and the S&P 500's gain of 3.42% in that time.

Wall Street will be looking for positivity from PINS as it approaches its next earnings report date. This is expected to be October 28, 2020. In that report, analysts expect PINS to post earnings of $0.03 per share. This would mark year-over-year growth of 200%. Meanwhile, our latest consensus estimate is calling for revenue of $382.58 million, up 36.78% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for PINS. Recent revisions tend to reflect the latest 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. PINS is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PINS has a Forward P/E ratio of 916.4 right now. This valuation marks a premium compared to its industry's average Forward P/E of 87.57.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 165, which puts it in the bottom 35% 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.

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

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