2 Great Growth Stocks To Buy On The Dip Heading Into June

Pinterest is a rather unique social media company in a world dominated by Facebook (FB Quick Quote FB - Free Report) and its various other platforms. PINS is essentially a visual discovery platform. The firm allows users to find and search for products, services, and more, from planning trips and coordinating an outfit to making home-cooked meals, learnings how to remodel or decorate a room, and beyond.

PINS has become a hit with advertisers, small businesses, entrepreneurs, and do-it-yourself enthusiasts. The company has thrived in the e-commerce and digital media age as fewer people flip through magazines or catalogs for purchasing inspiration. Plus, paid content and ads fit seamlessly into Pinterest, which is vital in our digital-heavy ad world where people pay to avoid ads on Netflix (NFLX Quick Quote NFLX - Free Report) and largely ignore more traditional banner ads.

The company’s FY20 revenue surge 48% to $1.69 billion to nearly match FY19’s 51% sales growth. PINS also added over 100 million new users last year to close 2020 with 459 million. It then topped our Q1 estimates at the end of April, with global MAUs up 30% to roughly 480 million. PINS executives also provided strong guidance that sent its consensus earnings estimates soaring, with its adjusted FY21 EPS figure 34% higher and FY22’s up 27%.

Zacks estimates now call for its FY21 revenue to climb another 52% from $1.69 billion to $2.57 billion, with FY22 expected to surge higher 36% (adding nearly another $1 billion) to come in at $3.50 billion. Alongside its impressive top-line growth outlook, PINS adjusted EPS figures are projected to soar 117% this year and 39% in FY22.

Pinterest has blown away our earnings estimates in the trailing four quarters and its positive revisions help it land a Zacks Rank #2 (Buy), alongside its “A” grade for Growth in our Style Scores system.

Pinterest is a prime example of a growth-focused technology firm that thrived during the tough early coronavirus environment. PINS was the beneficiary of its own strengths and gained on the back of wider market exuberance off the virus lows.

The stock is up 230% in the last year to destroy the Zacks Tech Sector’s 51% run and fellow standouts like Shopify (SHOP Quick Quote SHOP - Free Report) and Etsy (ETSY Quick Quote ETSY - Free Report). Luckily, the stock has cooled off and closed regular hours Wednesday at roughly $63 a share, or 30% below its mid-February highs.

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