On Tuesday, Pinterest (PINS) stock was upgraded from a relative strength (RS) rating of 67 to 75, indicating that it is currently considered to be performing well on a scale of 1 (worst) to 99 (best) by comparing its price performance over the past 52 weeks to other stocks in the database. Research has shown that the best-performing stocks usually have an RS rating over 80 in the early stages of their upward momentum. However, it remains uncertain if Pinterest can continue to rise and surpass this threshold.
Currently, Pinterest is considered extended and has moved out of the buy range after hitting a buy point of 28.90 in a first-stage double bottom pattern in October. Investors should keep an eye out for signs of a new pattern or follow-on buying opportunities, such as a three-weeks tight formation or a pullback to the 50-day or 10-week moving average. Although earnings growth has slowed from 155% to 83% in the last quarter, revenue has increased from 11% to 12%. The company is expected to announce its latest performance figures around April 25.
In terms of market leadership within the Internet-Content industry group, Pinterest ranks ninth among its peers. Some of the top-rated stocks in this group include Meta Platforms (META), Kanzhun ADR (BZ), and SEMrush Holdings (SEMR). As investors make their next moves, it’s important to stay informed about market developments and trends in order to make well-informed investment decisions.
