Exploring the Growth Potential of NYSE:PINS as It Nears a Breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if PINTEREST INC- CLASS A (NYSE:PINS) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted PINTEREST INC- CLASS A showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Understanding NYSE:PINS's Growth Score

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NYSE:PINS has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 106.78% over the past year.
• PINS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 41.29% yearly.
• Looking at the last year, PINS shows a quite strong growth in Revenue. The Revenue has grown by 12.80% in the last year.
• The Revenue has been growing by 32.22% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 19.43% on average over the next years. This is quite good.
• The Revenue is expected to grow by 15.56% on average over the next years. This is quite good.

A Closer Look at Health for NYSE:PINS

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:PINS has earned a 9 out of 10:

• PINS has an Altman-Z score of 35.70. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 35.70, PINS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• 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's Current ratio of 10.04 is amongst the best of the industry. PINS outperforms 95.52% of its industry peers.
• A Quick Ratio of 10.04 indicates that PINS has no problem at all paying 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.

Profitability Insights: NYSE:PINS

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:PINS has achieved a 5:

• Looking at the Return On Assets, with a value of 4.04%, PINS is in the better half of the industry, outperforming 70.15% of the companies in the same industry.
• With a decent Return On Equity value of 4.71%, PINS is doing good in the industry, outperforming 68.66% of the companies in the same industry.
• 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.
• PINS's Profit Margin of 4.64% is fine compared to the rest of the industry. PINS outperforms 70.15% of its industry peers.
• The Operating Margin of PINS (2.17%) is better than 61.19% of its industry peers.
• PINS has a Gross Margin of 78.11%. This is in the better half of the industry: PINS outperforms 68.66% of its industry peers.
• In the last couple of years the Gross Margin of PINS has grown nicely.

How does the Setup look for NYSE:PINS

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NYSE:PINS scores a 8 out of 10:

Besides having an excellent technical rating, PINS also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 43.90, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

More Strong Growth stocks can be found in our Strong Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of PINS

For an up to date full technical analysis you can check the technical report of PINS

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.