Pinterest (PINS) Soars 9.0%: Is Further Upside Left in the Stock?
Pinterest (PINS) shares ended the last trading session 9% higher at $29.10. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 12.3% gain over the past four weeks.
Pinterest is increasingly establishing a unique value proposition to advertisers that could provide a competitive advantage in the long haul. Through various innovations, it continues to dramatically improve the advertising platform, which presently appears to be one of the best ad platforms for consumer discretionary brands looking for new ways to reach customers and stretch smaller ad budgets.
The acquisition of the AI-powered, high-tech fashion-shopping platform, The Yes, has enabled it to create a strategic organization to help steer the evolution of its features and merchants. Pinterest and The Yes share a common vision of making it easy for customers to find products matching their tastes and style. The company has been making continuous efforts to absorb creators publishing videos and live streams to make the shopping experience swift and easy for customers.
This digital pinboard and shopping tool company is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of -42.9%. Revenues are expected to be $885.06 million, up 4.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Pinterest, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PINS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Pinterest is part of the Zacks Internet - Software industry. Twilio (TWLO), another stock in the same industry, closed the last trading session 5.1% higher at $65.45. TWLO has returned 19.5% in the past month.
Twilio's consensus EPS estimate for the upcoming report has changed -1.7% over the past month to -$0.09. Compared to the company's year-ago EPS, this represents a change of +55%. Twilio currently boasts a Zacks Rank of #4 (Sell).
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