Pinterest Stock Slides 2.73 Percent as Broader Markets Retreat
Pinterest shares closed at $21.76 during the latest trading session, marking a 2.73% decline from the previous day, finance.yahoo.com reported. The digital pinboard and shopping tool company trailed the broader market losses, as the S&P 500 registered a daily loss of 1.11% and the technology-dominated Nasdaq dropped 1.88%. Meanwhile, the Dow Jones Industrial Average experienced a minor decrease of 0.09%.
Despite the single-day pullback, Pinterest stock has climbed 19.24% over the past month. That monthly performance exceeds the Computer and Technology sector gain of 3.49% and outpaces the S&P 500 increase of 2.06% over the same timeframe.
Upcoming Earnings Projections and Revenue Growth
Investors are turning their attention to the upcoming financial results for Pinterest. Current projections indicate the company will report earnings of $0.50 per share, which would mark a year-over-year growth rate of 31.58%. Consensus estimates also point to projected quarterly revenue of $1.2 billion, representing a 14.42% increase compared to the prior-year quarter.
For the entire fiscal year, Zacks Consensus Estimates predict earnings of $2.06 per share alongside total revenue of $4.89 billion. These annual figures represent expected changes of +28.75% and +15.93%, respectively, when measured against the former year.
Analyst Estimates and Zacks Rank Status
Recent adjustments to analyst estimates reflect shifting short-term business trends for the platform. Positive revisions typically convey confidence from analysts regarding business performance and future profit potential, and these estimate alterations have historically linked directly to near-term stock price performance.
The Zacks Rank system incorporates these estimate changes into a rating model ranging from #1 (Strong Buy) to #5 (Strong Sell). While the Zacks Consensus EPS estimate remained stagnant over the past month, Pinterest currently holds a Zacks Rank of #5 (Strong Sell).
Valuation Metrics and Industry Comparisons
Pinterest currently trades at a Forward P/E ratio of 10.87, representing a discount when compared to the industry average Forward P/E of 20.8. Furthermore, the stock features a PEG ratio of 0.41, which factors in the company’s expected earnings growth rate.
That figure compares against the broader Internet – Software industry average PEG ratio of 1.19 as of the previous market close. The Internet – Software industry operates within the Computer and Technology sector, a grouping that holds a Zacks Industry Rank of 79, placing it inside the top 33% of more than 250 tracked industries.
Worth a look