NYSE:PINS, a strong growth stock, setting up for 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

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 31.82%, which is quite impressive.
• Measured over the past years, PINS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.67% on average per year.
• The Revenue has grown by 19.35% in the past year. This is quite good.
• Measured over the past years, PINS shows a very strong growth in Revenue. The Revenue has been growing by 26.12% 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 14.11% on average per year.
• The Revenue is expected to grow by 12.31% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Unpacking NYSE:PINS's Health Rating

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:PINS, the assigned 9 for health provides valuable insights:

• PINS has an Altman-Z score of 28.63. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
• PINS has a better Altman-Z score (28.63) than 93.94% of its industry peers.
• PINS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• PINS has a Current Ratio of 8.75. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
• With an excellent Current ratio value of 8.75, PINS belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
• PINS has a Quick Ratio of 8.75. This indicates that PINS is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of PINS (8.75) is better than 93.94% of its industry peers.

Profitability Insights: NYSE:PINS

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:PINS has earned a 7 out of 10:

• PINS's Return On Assets of 34.85% is amongst the best of the industry. PINS outperforms 100.00% of its industry peers.
• PINS has a better Return On Equity (39.19%) than 100.00% of its industry peers.
• The Return On Invested Capital of PINS (2.87%) is better than 62.12% of its industry peers.
• PINS has a better Profit Margin (51.07%) than 98.48% of its industry peers.
• PINS's Profit Margin has improved in the last couple of years.
• PINS has a better Operating Margin (4.93%) than 65.15% of its industry peers.
• PINS has a Gross Margin of 79.42%. This is in the better half of the industry: PINS outperforms 71.21% of its industry peers.
• In the last couple of years the Gross Margin of PINS has grown nicely.

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:PINS has a 7 as its setup rating:

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 very little resistance above the current price. There is a support zone below the current price at 38.86, 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.

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

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.