10 Most Undervalued Growth Stocks to Buy Now

8. Pinterest, Inc. (NYSE:PINS)

Forward P/E ratio: 11.66

Revenue CAGR last 5 years: 27.50%

Number of Hedge Fund Holders: 73

​​Pinterest, Inc. (NYSE:PINS) is known for its visual discovery platform with the same name, which enables users to post and explore visual ideas with fashion, home decor, travel, and other themes. The company’s advantage comes from its scale, with monthly active users exceeding 550 million people across the entire world. Similar to other media platforms, PINS generates revenue primarily through advertising. PINS ranked fifth on our recent list of 10 Undervalued Stocks to Invest in According to Goldman Sachs.

Pinterest, Inc. (NYSE:PINS) achieved a transformative year in 2024, as it grew its user base to record levels and delivered over $1 billion in adjusted EBITDA, representing a roughly 50% increase YoY. In the latest reported Q4 2024, PINS achieved its first $1 billion revenue quarter with 18% revenue growth and drove a record number of clicks during the critical holiday season. PINS has managed to grow explosively while at the same time remaining apparently cheap on a forward P/E basis, securing its eighth place on our list of the most undervalued stocks to buy.

Pinterest, Inc. (NYSE:PINS)’s success is driven by strategic initiatives focused on leveraging AI and unique first-party signals to enhance personalization and user experience. The company has transformed its user experience by investing in actionability, relevance, and curation, while distinguishing itself as a positive place online. Looking forward to 2025, PINS plans to continue investing in curation experiences and platform shopability while innovating its lower-funnel tools to help advertisers reach customers with high commercial intent.