There are plenty of US stocks that I’d suggest are exciting, but not all of them look that cheap right now. One I rather like, despite recent gains, is Pinterest (NYSE:PINS). It may not sound like a world-beating tech stock, such as Nvidia, but its valuation metrics and development in artificial intelligence (AI) definitely make it an exciting proposition.
Let’s take a closer look.
The world of Pinterest
Pinterest is experiencing strong growth in 2025 with first-quarter revenue up 16% to $855m and monthly active users reaching a record 570m. The company’s rapid adoption of AI is having a clear impact. New AI-driven visual search models are enhancing content recommendations and making shopping more actionable for users, which is driving better results for advertisers and helping Pinterest win market share.
AI helps by analysing massive amounts of user data to predict tastes and trends. This enables Pinterest to serve up highly personalised content and ads that users are more likely to engage with. This leads to higher click-through rates and a better return on investment for advertisers. I’d also expect the growth of AI-made imaging to help users find the results that they’re looking for.
However, developing/still-under-development US trade policy has led some Asia-based e-commerce advertisers to reduce their digital ad spend. This has created small pockets of weaker demand. Despite these challenges, Pinterest’s broader growth trajectory appears strong. Predicting the endgame for US trade policy isn’t easy, but I’d be surprised if it truly undermined the business model of US companies like Pinterest.
The valuation metrics are very attractive
Pinterest’s valuation is evolving rapidly as its growth accelerates. The company’s forward price-to-earnings (P/E) ratio is projected to fall from 17.2 times in 2025 to 11.98 by 2027, and as low as 7.54 by 2028, reflecting robust consensus earnings growth and improving profitability. These are really strong numbers.
The forward price-to-earnings-to-growth (PEG) ratio, which measures P/E relative to growth, stands at 0.53. This is an incredibly low figure and well below the sector median of 1.41. Simply, this indicates that Pinterest is valued cheaply given its expected earnings expansion.
Importantly, Pinterest maintains a strong balance sheet, with $2.6bn in cash and just $144m in debt, giving it significant net cash and financial flexibility. This healthy capital structure further underpins its ability to invest in growth and weather any market volatility. It’s also means more than 10% of its market cap is covered by net cash.
The bottom line
Pinterest may be undervalued given some nerviness about US trade policy and also because the company’s margins are a little thin. While the gross margin is around 80%, the EBITDA margin is closer to 5%. This suggests it can go from a profit-making position to a loss-making one rather quickly.
Nonetheless, this doesn’t stop me from being bullish. I added this stock to my portfolio in April. I may buy more.
