Jan. 20 at 3:32 PM
$PINS One Stock Under
$50 to Buy:
Pinterest (PINS)
Share Price:
$25.97
Created with the idea of virtually replacing paper catalogues, Pinterest (NYSE: PINS) is an online image and social discovery platform.
Why Do We Love PINS?
Monthly Active Users have grown by 11.2% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features
Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 28.3%, and its operating leverage amplified its profits over the last few years
Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its improved cash conversion implies it’s becoming a less capital-intensive business
Pinterest’s stock price of
$25.97 implies a valuation ratio of 11.6x forward EV/EBITDA. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.