NYSE:PINS qualifies as a high growth stock and is consolidating.

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.

Unpacking NYSE:PINS's Growth Rating

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:

• The Earnings Per Share has grown by an impressive 88.41% 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.
• The Revenue has grown by 16.21% in the past year. This is quite good.
• The Revenue has been growing by 32.22% on average over the past years. This is a very strong growth!
• PINS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.43% yearly.
• 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

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, 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 25.37. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
• PINS has a better Altman-Z score (25.37) than 97.18% 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 9.50. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 9.50, PINS belongs to the best of the industry, outperforming 94.37% of the companies in the same industry.
• PINS has a Quick Ratio of 9.50. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
• PINS has a Quick ratio of 9.50. This is amongst the best in the industry. PINS outperforms 94.37% of its industry peers.

How do we evaluate the Profitability for NYSE:PINS?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:PINS, the assigned 5 is a significant indicator of profitability:

• PINS's Return On Assets of 5.12% is amongst the best of the industry. PINS outperforms 81.69% of its industry peers.
• With a decent Return On Equity value of 6.00%, PINS is doing good in the industry, outperforming 77.46% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 2.70%, PINS is in the better half of the industry, outperforming 64.79% of the companies in the same industry.
• PINS's Profit Margin of 5.75% is fine compared to the rest of the industry. PINS outperforms 76.06% of its industry peers.
• With a decent Operating Margin value of 3.46%, PINS is doing good in the industry, outperforming 63.38% of the companies in the same industry.
• With a decent Gross Margin value of 78.58%, PINS is doing good in the industry, outperforming 70.42% of the companies in the same industry.
• In the last couple of years the Gross Margin of PINS has grown nicely.

Why is NYSE:PINS a setup?

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:

Although the technical rating is bad, PINS does present a nice setup opportunity. Prices have been consolidating lately. There is a support zone below the current price at 32.17, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

Our latest full technical report of PINS contains the most current technical analsysis.

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.