We recently compiled a list of the 10 Best Kid-Friendly Stocks To Buy Right Now. In this article, we are going to take a look at where Pinterest, Inc. (NYSE:PINS) stands against the other kid-friendly stocks.

Expert Thinks Value Stocks are Making a Comeback

Investors and analysts alike are concerned about where equities are headed in 2025. On December 23, Eric Beyrich, Sound Income Strategies co-chief investment officer appeared in an interview on Yahoo Finance to share his market thesis for equities in 2025.

Beyrich shared his perspective on the market, emphasizing a possible rotation in 2025. He added that drug and mega-cap tech stocks have previously led the market, but as their growth rates continue to decline, a rotation is probable. He also emphasized that value names, especially those that have underperformed over the past two years, are expected to make a comeback. Adding to this, Beyrich suggested that these value names have comparable relative growth rates and their valuation multiples, more often than not, are a third of that of the market.

READ MORE: 10 Stocks That Will Make You Rich In 2025 and 12 Best Energy Stocks To Invest In Now.

Speaking of the S&P 500, excluding Big Tech, the market has underperformed, and with the growth rate for the big seven declining, the market emphasis will more likely gear towards value names. Beyrich also added that as rates come down, housing inflation is also expected to decline. He suggested that “abject extremes” are going to help value stocks, especially because the S&P 500 has been trading at 25 times its forward earnings. He emphasized that people have been investing in these stocks because they are scarce, and with growth rates declining, the market will shift away from more expensive names.

On the flip side, Beyrich acknowledged that some of the names are great companies with huge cash flows, but they do have a pricing issue. Beyrich also shed light on the nature of valuations, suggesting that they behave like pendulums, going extremes in both directions. Overall, he remains extremely bullish on cheap companies, especially those with solid catalysts for improvement.

Stocks with a sustainable and long-standing business model are often deemed safer and have been a household name for adults as well as kids.

Our Methodology

To come up with the 10 best kid-friendly stocks to buy right now, we went over multiple similar rankings on the internet. We then examined the hedge fund sentiment of each stock and picked the most popular ones. Our list is in ascending order of the number of hedge fund holders as of Q3 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Pinterest, Inc. (NYSE:PINS)

Number of Hedge Fund Holders: 66

Pinterest, Inc. (NYSE:PINS) is a prominent social media platform known for its aesthetics. The visual discovery engine is loved by kids and adults alike, allowing users to download wallpapers for their mobile phones, tablets, and desktops. Users also use the app to brainstorm decor ideas, create visual boards, and sell products. As of Q3 2024, the company had over 537 million monthly active users who save more than 1.5 billion pins every week. The platform is also gaining immense traction as a social commerce platform, with more than 50% of users categorizing Pinterest as a place to shop.

Pinterest, Inc. (NYSE:PINS) has introduced a variety of product updates in 2024 to increase usage and enhance product performance. Earlier in June, the company introduced a new way to share Pinterest boards on social media, allowing users to flaunt their aesthetic on more public platforms. More recently on September 24, the company launched a new way to create and share collages, allowing users to mix collages, collaborate with other users, and share them. Pinterest, Inc. (NYSE:PINS) is also working diligently to become a full-funnel advertising solution. To align with the goal, on October 1, the company launched its Pinterest Performance+ Suite, allowing advertisers to use Pinterest Performance+ campaigns to meet sales objectives. These campaigns are highly targeted and time-efficient.

RiverPark Advisors’ RiverPark Large Growth Fund stated the following regarding Pinterest, Inc. (NYSE:PINS) in its Q3 2024 investor letter:

“Pinterest, Inc. (NYSE:PINS): Similar to GOOG, PINS was a top detractor in the third quarter despite reporting solid second quarter results and giving guidance that, it seemed to us, fell within the growth framework issued at the September 2023 Investor Day. Specifically, second quarter Monthly Active Users (MAUs) were 522 million, up 12% year-over-year and 2 million better than estimates, Revenue was $854 million, $5 million better than estimates, and EBITDA was $180 million, $4 million better than estimates. Revenue guidance for the third quarter of $885-900 million (+17% growth) was slightly below expectations and seemed to be what drove the stock down despite being squarely within the company’s 3-5-year guidance of mid-to high teens percentage revenue growth.

We believe Pinterest to be an extremely well-positioned internet advertising platform. Users are increasingly coming to Pinterest to get inspiration for their home, their style, or upcoming travel, which often means they are actively looking for products and services to buy. The company currently has 522 million MAU’s, 2/3 of whom are female (who continue to control the lion’s share of household purchasing budgets), which positions the company well to continue to take share of future ad dollar allocations. Continued growth of MAU’s and ARPU (grew 8% in the quarter), and the ramp of third-party relationships with Amazon and Google, should return the company to revenue growth rates approaching 20% for the coming years. In addition, strong cost controls should drive EBITDA margins back to the 2021 peak (40% v the current 21%), leading to strong growth in earnings and cash flow in the years to come.”

Overall PINS ranks 7th on our list of the best kid-friendly stocks to buy now. While we acknowledge the potential of PINS as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PINS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article is originally published at Insider Monkey.