Pinterest Stock Upgraded to RS Rating of 75: Can It Continue Its Momentum?

Pinterest Stock Shows Stronger Relative Strength But Still Lags Benchmark

On Tuesday, Pinterest (PINS) stock was upgraded from a relative strength (RS) rating of 67 to 75 by IBD. This unique rating measures market leadership on a scale of 1 to 99 by comparing a stock’s price performance over the past 52 weeks to other stocks in the database. Research shows that the best-performing stocks typically have an RS rating above 80 in the early stages of their upward momentum. It remains uncertain if Pinterest stock 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. Despite earnings growth slowing 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 industry rankings, Pinterest stock ranks ninth among its peers within the Internet-Content industry group. 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 crucial to stay informed about market developments and trends in order to make well-informed investment decisions.

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