NYSE:PINS: a strong growth stock preparing for the next leg up?.

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether PINTEREST INC- CLASS A (NYSE:PINS) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but PINTEREST INC- CLASS A has surfaced on our radar for growth with base formation, warranting further examination.

Growth Insights: NYSE:PINS

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NYSE:PINS was assigned a score of 8 for growth:

• PINS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 106.78%, which is quite impressive.
• The Earnings Per Share has been growing by 41.29% on average over the past years. This is a very strong growth
• PINS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.80%.
• Measured over the past years, PINS shows a very strong growth in Revenue. The Revenue has been growing by 32.22% on average per year.
• Based on estimates for the next years, PINS will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.43% on average per year.
• PINS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.39% yearly.

Health Examination for NYSE:PINS

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:PINS has achieved a 9 out of 10:

• An Altman-Z score of 33.00 indicates that PINS is not in any danger for bankruptcy at the moment.
• The Altman-Z score of PINS (33.00) is better than 100.00% of its industry peers.
• There is no outstanding debt for PINS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• PINS has a Current Ratio of 10.04. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
• PINS has a Current ratio of 10.04. This is amongst the best in the industry. PINS outperforms 95.52% of its industry peers.
• PINS has a Quick Ratio of 10.04. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Quick ratio value of 10.04, PINS belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:PINS, the assigned 5 is noteworthy for profitability:

• PINS has a better Return On Assets (4.04%) than 70.15% of its industry peers.
• PINS's Return On Equity of 4.71% is fine compared to the rest of the industry. PINS outperforms 68.66% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 1.64%, PINS is in the better half of the industry, outperforming 61.19% of the companies in the same industry.
• With a decent Profit Margin value of 4.64%, PINS is doing good in the industry, outperforming 70.15% of the companies in the same industry.
• With a decent Gross Margin value of 78.11%, PINS is doing good in the industry, outperforming 68.66% of the companies in the same industry.
• PINS's Gross Margin has improved in the last couple of years.

How does the Setup look for NYSE:PINS

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NYSE:PINS exhibits a 7 setup rating, indicating its consolidation status in recent days and weeks.

PINS has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 40.67, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Check the latest full fundamental report of PINS for a complete fundamental analysis.

Check the latest full technical report of PINS for a complete technical analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.