Pinterest (PINS) Increases Yet Falls Behind Market: What Investors Need to Know
PinterestPinterest(US:PINS) ZACKS·2025-04-22 22:50

Core Insights - Pinterest's stock closed at $24.68, reflecting a +1.94% increase, which underperformed compared to the S&P 500's gain of 2.51% [1] - Over the past month, Pinterest's shares have declined by 28.88%, significantly worse than the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 8.86% [1] Earnings Performance - Pinterest's upcoming earnings report is scheduled for May 8, 2025, with projected earnings per share (EPS) of $0.25, indicating a 25% increase year-over-year [2] - Revenue is expected to reach $846.52 million, reflecting a 14.4% rise from the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $1.76 per share and revenue at $4.13 billion, representing increases of +36.43% and +13.23% respectively from the previous year [3] - Recent changes in analyst estimates for Pinterest may indicate shifting near-term business trends, with positive revisions suggesting a favorable business outlook [3][4] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Pinterest at 3 (Hold) [5] - The Forward P/E ratio for Pinterest is 13.76, indicating a discount compared to the industry's Forward P/E of 23.39 [6] - Pinterest has a PEG ratio of 0.43, significantly lower than the Internet - Software industry's average PEG ratio of 1.94 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 82, placing it in the top 34% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]