Pinterest (PINS) closed at $31 in the latest trading session, marking a -1.49% move from the prior day. This change lagged the S&P 500's daily gain of 0.55%. Meanwhile, the Dow gained 1.01%, and the Nasdaq, a tech-heavy index, lost 0.14%.

The digital pinboard and shopping tool company's stock has dropped by 14.9% in the past month, falling short of the Computer and Technology sector's loss of 8.88% and the S&P 500's loss of 6.22%.

Market participants will be closely following the financial results of Pinterest in its upcoming release. In that report, analysts expect Pinterest to post earnings of $0.25 per share. This would mark year-over-year growth of 25%. At the same time, our most recent consensus estimate is projecting a revenue of $847.24 million, reflecting a 14.49% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.82 per share and a revenue of $4.28 billion, representing changes of +41.09% and +17.29%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Pinterest. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

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, there's been a 2.58% rise in the Zacks Consensus EPS estimate. Pinterest is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Pinterest is currently trading at a Forward P/E ratio of 17.31. Its industry sports an average Forward P/E of 26.45, so one might conclude that Pinterest is trading at a discount comparatively.

Also, we should mention that PINS has a PEG ratio of 0.51. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Software industry stood at 2.01 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 75, positioning it in the top 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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Pinterest, Inc. (PINS) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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