What If You Were Missing The Value In PINS Stock?

Here is why we think Pinterest (PINS) deserves consideration as a value stock.

• Reasonable Revenue Growth: 17.8% LTM and 12.2% last 3 year average.
• Cash Generative: Nearly 25.3% free cash flow margin and 5.3% operating margin LTM.
• No Major Shocks: PINS has avoided any revenue collapses in the last 3 years.
• Modest Valuation: Despite encouraging fundamentals, PINS trades at a PE multiple of 13.8
• Opportunity vs S&P: Compared to S&P, you get lower valuation, higher revenue growth, but lower margins

As a quick background, Pinterest operates as a visual discovery engine offering inspiration for recipes, style, home decor, DIY projects, and more, both in the United States and internationally.

*LTM: Last Twelve Months

But do these numbers tell the full story? Read Buy or Sell PINS Stock to see if Pinterest still has an edge that holds up under the hood.

That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure

Stocks Like These Can Outperform. Here Is Data

For 65 similar value stocks chosen as of mid 2024, consider the following stats for the subsequent 1 year period.

• Average peak return of 39.3% vs 14.4% for S&P, with maximum peak return of 133%
• Win rate of 60%; win rate represents % of stocks with positive return
• Average 1-year return of 14.6%, similar to S&P’s despite tariff instability

But Consider The Risk

That said, PINS isn’t immune to big drops. It fell about 61% during the Covid pandemic and took an even steeper hit of roughly 81% in the inflation shock. Even with solid fundamentals, these dips show the stock can get hit hard when broader market turmoil hits. Risk is still very real, no matter what.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read PINS Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.