PINTEREST INC-CLASS A (NYSE:PINS) – A Strong Growth Stock with Reasonable Valuation

PINTEREST INC-CLASS A (NYSE:PINS) was identified as an affordable growth stock by our stock screener. PINS demonstrates strong growth potential while maintaining solid financial health and profitability, all at a reasonable valuation. Below, we break down why this stock stands out.

Growth Prospects

PINS has shown impressive growth metrics:

• Revenue Growth: Over the past year, revenue increased by 17.81%, with a five-year average annual growth rate of 26.12%.
• Earnings Growth: EPS grew by 21.31% in the last year, with an average annual growth of 8.67% over the past five years.
• Future Expectations: Analysts project EPS growth of 18.63% annually, alongside revenue growth of 14.02% in the coming years.

Valuation

Despite strong growth, PINS remains reasonably priced:

• P/E Ratio: At 22.84, it trades slightly below the industry average of 25.77.
• Forward P/E: 15.60, which is cheaper than 67.61% of its peers.
• PEG Ratio: A low PEG ratio suggests the stock is fairly valued relative to its expected earnings growth.

Financial Health & Profitability

PINS excels in financial stability and profitability:

• Zero Debt: The company has no outstanding debt, reducing financial risk.
• Strong Liquidity: Current and quick ratios of 8.41 indicate excellent short-term financial health.
• High Margins: A 50.41% profit margin places PINS in the top 1.41% of its industry.

For a deeper look, review the full fundamental analysis of PINS.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.