Stocks with accelerating fundamentals and an improving chart setup are the target of the Strong Growth screen with good technical setup ratings. That methodology combines fundamental strength, acceptable profitability and health, and technical breakout conditions to avoid the two most common growth investing mistakes: buying a good company at the wrong time, or buying a strong chart with no underlying earnings power behind it. PINTEREST INC- CLASS A (NYSE:PINS) is one stock that currently passes through both filters.
What the fundamental report shows
Pinterest carries a ChartMill fundamental rating of 7 out of 10, with the strongest contributions coming from growth and financial health. The key fundamental inputs look like this:
- Growth: 8/10, with last-year revenue growth of 16.64% and EPS growth of 15.13%. Over the longer measurement period, revenue compounded around 20.06% per year and EPS around 32.79% per year.
- Health: 8/10, supported by no outstanding debt, a current ratio of 3.81, and an Altman-Z score of 5.97.
- Profitability: 6/10. Gross margin is strong at 79.47%, but the last return on invested capital of 5.17% remains below the industry average of 11.05% over a three-year window. It is above Pinterest's own three-year average of 2.64%, so the trend is improving.
- Valuation: 6/10. The trailing P/E is 13.93, the forward P/E is 10.63, and the PEG ratio points to a reasonable price relative to expected growth.
The company does not pay a dividend, which is a typical trait for a growth business still reinvesting in expansion. For this screen, the more important point is that the growth is not being bought at an extreme multiple. A full breakdown is available in this Pinterest fundamental analysis report.
What the technical setup adds
The technical picture reinforces the fundamental case and adds timing. The ChartMill technical rating is 7 out of 10, while the setup rating is even better at 8 out of 10. Short-term and long-term trends are both positive, and the stock is trading above its rising 20-, 50-, and 100-day moving averages.
The screen searches for breakout patterns, and PINS currently shows one. The stock has been consolidating with reduced volatility, there is limited resistance above the current price, and a recent Pocket Pivot signal suggests accumulation. The report also notes increased activity from large players in the daily timeframe, which adds institutional confirmation to the setup.
Key technical levels:
- Resistance: 24.38 from a weekly horizontal line, followed by a 25.53 to 25.75 zone in the daily timeframe.
- Support: 23.41 to 23.50, then a stronger 21.89 to 22.57 zone formed by trend lines and moving averages in multiple timeframes.
- Trend context: The stock is up 7.83% over the last month, 25.17% over three months, and 58.04% over six months, although it remains below its 52-week high and has lagged the broader market over the past year.
The proposed breakout trade in the report uses an entry at 24.39, just above the nearest resistance, with a stop at 23.40. The worst-case loss would be about 4.06% on the position, providing a clearly defined risk level before the stock can prove its breakout. More detail can be found in the technical analysis report for Pinterest.
Why the combination matters
Growth stocks can fail even when the business story is intact if the entry is poorly timed. The strong growth screen addresses that by pairing fundamental expansion with technical conditions that improve the odds of a successful breakout.
In PINS, the growth and health scores do the fundamental work. Revenue and EPS are growing at double-digit rates, the balance sheet is clean, and the valuation leaves room for continued upside. The setup rating then handles the timing. The recent consolidation, improving short-term trend, and proximity to a resistance level create the kind of risk/reward structure that technical traders look for before committing capital.
There are limitations. The stock has been a weak performer relative to the broader market over the last year, and profitability remains average against its interactive media peers. The current setup also depends on a breakout above resistance, so discipline on the downside is necessary if the stock fails to follow through.
Other screens reinforce the PINS case
Beyond the Strong Growth technical setup list, PINS also shows up on screens that support both sides of the thesis.
- The breakout setup screen confirms the technical timing angle: PINS combines technical strength, constructive consolidation, and enough volatility to support a potential breakout.
- The growth-at-a-reasonable-price screen backs the fundamental logic: PINS combines growth characteristics with a valuation that remains within defined limits, so the stock is not just expanding but also reasonably priced.
Together, these screens add independent confirmation that the stock offers both the fundamental profile and the chart behavior the article's strategy is designed to find.
The bottom line
PINS is an interesting candidate for the strong growth with technical setup strategy, not because it is the highest-scoring stock in every category, but because it combines several elements at once. It has double-digit growth, a clean balance sheet, a reasonable valuation, and a chart that is compressing near resistance. That combination is exactly what the screen is built to surface. Investors who want to see other stocks matching the same methodology can run the full list on the Strong Growth technical setup screen.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »
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Pinterest (NYSE:PINS) Combines Strong Growth with a High-Quality Technical Setup
Stocks with accelerating fundamentals and an improving chart setup are the target of the Strong Growth screen with good technical setup ratings. That methodology combines fundamental strength, acceptable profitability and health, and technical breakout conditions to avoid the two most common growth investing mistakes: buying a good company at the wrong time, or buying a strong chart with no underlying earnings power behind it. PINTEREST INC- CLASS A (NYSE:PINS) is one stock that currently passes through both filters.
What the fundamental report shows
Pinterest carries a ChartMill fundamental rating of 7 out of 10, with the strongest contributions coming from growth and financial health. The key fundamental inputs look like this:
The company does not pay a dividend, which is a typical trait for a growth business still reinvesting in expansion. For this screen, the more important point is that the growth is not being bought at an extreme multiple. A full breakdown is available in this Pinterest fundamental analysis report.
What the technical setup adds
The technical picture reinforces the fundamental case and adds timing. The ChartMill technical rating is 7 out of 10, while the setup rating is even better at 8 out of 10. Short-term and long-term trends are both positive, and the stock is trading above its rising 20-, 50-, and 100-day moving averages.
The screen searches for breakout patterns, and PINS currently shows one. The stock has been consolidating with reduced volatility, there is limited resistance above the current price, and a recent Pocket Pivot signal suggests accumulation. The report also notes increased activity from large players in the daily timeframe, which adds institutional confirmation to the setup.
Key technical levels:
The proposed breakout trade in the report uses an entry at 24.39, just above the nearest resistance, with a stop at 23.40. The worst-case loss would be about 4.06% on the position, providing a clearly defined risk level before the stock can prove its breakout. More detail can be found in the technical analysis report for Pinterest.
Why the combination matters
Growth stocks can fail even when the business story is intact if the entry is poorly timed. The strong growth screen addresses that by pairing fundamental expansion with technical conditions that improve the odds of a successful breakout.
In PINS, the growth and health scores do the fundamental work. Revenue and EPS are growing at double-digit rates, the balance sheet is clean, and the valuation leaves room for continued upside. The setup rating then handles the timing. The recent consolidation, improving short-term trend, and proximity to a resistance level create the kind of risk/reward structure that technical traders look for before committing capital.
There are limitations. The stock has been a weak performer relative to the broader market over the last year, and profitability remains average against its interactive media peers. The current setup also depends on a breakout above resistance, so discipline on the downside is necessary if the stock fails to follow through.
Other screens reinforce the PINS case
Beyond the Strong Growth technical setup list, PINS also shows up on screens that support both sides of the thesis.
Together, these screens add independent confirmation that the stock offers both the fundamental profile and the chart behavior the article's strategy is designed to find.
The bottom line
PINS is an interesting candidate for the strong growth with technical setup strategy, not because it is the highest-scoring stock in every category, but because it combines several elements at once. It has double-digit growth, a clean balance sheet, a reasonable valuation, and a chart that is compressing near resistance. That combination is exactly what the screen is built to surface. Investors who want to see other stocks matching the same methodology can run the full list on the Strong Growth technical setup screen.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »