Is PINTEREST INC- CLASS A (NYSE:PINS) on the Verge of a Major Breakout as a Strong Growth Stock?

Exploring Growth Potential: PINTEREST INC- CLASS A (NYSE:PINS) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and PINTEREST INC- CLASS A has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected PINTEREST INC- CLASS A on our screen for growth with base formation, suggesting it merits a closer look.

How We Gauge Growth for PINS

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. PINS boasts a 8 out of 10:

• The Earnings Per Share has grown by an impressive 21.31% over the past year.
• The Earnings Per Share has been growing by 8.67% on average over the past years. This is quite good.
• Looking at the last year, PINS shows a quite strong growth in Revenue. The Revenue has grown by 19.35% in the last year.
• PINS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.12% yearly.
• Based on estimates for the next years, PINS will show a quite strong growth in Earnings Per Share. The EPS will grow by 18.63% on average per year.
• The Revenue is expected to grow by 14.02% 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.

Analyzing Health Metrics

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. PINS has earned a 9 out of 10:

• PINS has an Altman-Z score of 20.52. This indicates that PINS is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 20.52, PINS belongs to the top of the industry, outperforming 97.14% 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.
• A Current Ratio of 8.75 indicates that PINS has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 8.75, PINS belongs to the best of the industry, outperforming 95.71% 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.
• PINS has a Quick ratio of 8.75. This is amongst the best in the industry. PINS outperforms 95.71% of its industry peers.

Evaluating Profitability: PINS

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. PINS was assigned a score of 7 for profitability:

• Looking at the Return On Assets, with a value of 34.85%, PINS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• PINS has a Return On Equity of 39.19%. This is amongst the best in the industry. PINS outperforms 98.57% of its industry peers.
• The Return On Invested Capital of PINS (2.87%) is better than 67.14% of its industry peers.
• PINS has a better Profit Margin (51.07%) than 98.57% of its industry peers.
• PINS's Profit Margin has improved in the last couple of years.
• PINS has a Operating Margin of 4.93%. This is in the better half of the industry: PINS outperforms 64.29% of its industry peers.
• The Gross Margin of PINS (79.42%) is better than 71.43% of its industry peers.
• PINS's Gross Margin has improved in the last couple of years.

How does the Setup look for PINS

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for PINS is 8:

PINS has a bad technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 27.87. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 26.59, 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

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.