Pinterest (PINS) Declines More Than Market: Some Information for Investors

Group 1: Company Performance - Pinterest's stock closed at $34.75, reflecting a -1.03% change from the previous day, underperforming compared to the S&P 500's daily loss of 0.27% [1] - Over the past month, Pinterest's stock has increased by 6.62%, which is lower than the Computer and Technology sector's gain of 11.99% and the S&P 500's gain of 6.9% [1] Group 2: Earnings Expectations - The upcoming earnings report for Pinterest is expected to show an EPS of $0.34, representing a 17.24% increase year-over-year [2] - Revenue is projected to be $973.08 million, indicating a 13.99% rise compared to the same quarter last year [2] - For the full year, earnings are estimated at $1.84 per share and revenue at $4.15 billion, reflecting increases of +42.64% and +13.8% respectively from the prior year [3] Group 3: Analyst Forecasts and Valuation - Recent revisions to analyst forecasts for Pinterest are important as they reflect changes in short-term business dynamics, with positive revisions indicating a favorable outlook [4] - The Zacks Rank system, which assesses estimate changes, currently ranks Pinterest at 3 (Hold), with a recent upward shift of 1.39% in the EPS estimate [6] - Pinterest's Forward P/E ratio is 19.12, which is lower than the industry's Forward P/E of 29.06, and its PEG ratio stands at 0.57 compared to the industry average of 2.29 [7] Group 4: Industry Context - The Internet - Software industry, which includes Pinterest, has a Zacks Industry Rank of 41, placing it in the top 17% 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]