NYSE:PINS—Positioned as a High-Growth Stock, Ready for a Potential 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.

Growth Assessment of NYSE:PINS

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NYSE:PINS has received a 8 out of 10:

• PINS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 65.12%, which is quite impressive.
• Measured over the past years, PINS shows a very strong growth in Earnings Per Share. The EPS has been growing by 41.29% on average per year.
• The Revenue has grown by 17.70% 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!
• Based on estimates for the next years, PINS will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.12% on average per year.
• Based on estimates for the next years, PINS will show a quite strong growth in Revenue. The Revenue will grow by 14.36% on average per year.

Health Assessment of NYSE:PINS

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:PINS scores a 9 out of 10:

• PINS has an Altman-Z score of 21.29. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 21.29, PINS belongs to the best of the industry, outperforming 95.71% 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 7.90. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 7.90, PINS belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
• PINS has a Quick Ratio of 7.90. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
• PINS has a better Quick ratio (7.90) than 94.29% of its industry peers.

A Closer Look at 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 6.18% is amongst the best of the industry. PINS outperforms 82.86% of its industry peers.
• The Return On Equity of PINS (7.46%) is better than 78.57% of its industry peers.
• PINS has a Return On Invested Capital of 2.93%. This is in the better half of the industry: PINS outperforms 64.29% of its industry peers.
• PINS's Profit Margin of 6.21% is fine compared to the rest of the industry. PINS outperforms 78.57% of its industry peers.
• With a decent Operating Margin value of 3.30%, PINS is doing good in the industry, outperforming 61.43% of the companies in the same industry.
• PINS has a Gross Margin of 78.94%. This is in the better half of the industry: PINS outperforms 68.57% of its industry peers.
• In the last couple of years the Gross Margin of PINS has grown nicely.

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:PINS currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

PINS has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 30.78. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 28.78, 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.

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

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.