The Enthusiastic Amateur Investors Fueling Palantir's Growth

Palantir Technologies Inc. (PLTR) Shows Strong Performance Ahead of Earnings Report

In the most recent trading session, Palantir Technologies Inc. (PLTR) closed at $35.59, marking a 1.95% increase from the previous day. This performance outpaced the S&P 500’s daily gain of 0.54%, with the Dow up 0.72% and the Nasdaq climbing 0.65%.

Over the past month, Palantir’s stock has surged by 11.82%, outperforming the Business Services sector’s 7.34% gain and the S&P 500’s 4.86% rise. Investors are eagerly anticipating the company’s upcoming earnings report, with expectations set for an EPS of $0.09, reflecting a 28.57% year-over-year increase. Revenue is projected to reach $705.1 million, marking a 26.33% year-over-year growth.

Palantir currently holds a Zacks Rank of #3 (Hold), with the Zacks Consensus EPS estimate remaining steady over the past month. Historically, Zacks Rank #1 (Strong Buy) stocks have delivered an average annual return of +25% since 1988. However, Palantir’s Forward P/E ratio stands at 97.65, significantly higher than the industry average of 23.36, indicating a premium valuation.

The company also has a PEG ratio of 3.25, compared to the Technology Services industry’s average of 1.51. This ratio, which accounts for earnings growth expectations, reflects Palantir’s higher valuation relative to industry peers.

The Technology Services sector, which Palantir is part of, is ranked 73 out of over 250 industries by Zacks, placing it in the top 29%. This ranking is based on the average Zacks Rank of the stocks within the sector, with the top 50% of rated industries generally outperforming the bottom half by a factor of 2 to 1.

Looking ahead, Palantir’s full-year Zacks Consensus Estimates forecast earnings of $0.36 per share and revenue of $2.76 billion, representing year-over-year increases of 44% and 24.15%, respectively.

Investors should watch for any recent revisions to analyst forecasts for further insights into Palantir’s near-term performance. These revisions often correlate with stock price movements, and Zacks Rank integrates these changes into its rating system.

For the latest updates on PLTR, visit Zacks.com.