Zacks Equity Research
3 min read
Palantir Technologies Inc. (PLTR) closed at $174.34 in the latest trading session, marking a +1.03% move from the prior day. This change outpaced the S&P 500’s 0.45% loss on the day. Elsewhere, the Dow saw a downswing of 1.21%, while the tech-heavy Nasdaq depreciated by 0.01%.
The company’s stock has climbed by 0.59% in the past month, exceeding the Computer and Technology sector’s loss of 1.9% and the S&P 500’s loss of 2.43%.
The investment community will be closely monitoring the performance of Palantir Technologies Inc. in its forthcoming earnings report. On that day, Palantir Technologies Inc. is projected to report earnings of $0.41 per share, which would represent year-over-year growth of 95.24%. Alongside, our most recent consensus estimate is anticipating revenue of $2.17 billion, indicating a 83.95% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.6 per share and a revenue of $8.19 billion, representing changes of +113.33% and +82.96%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Palantir Technologies Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Palantir Technologies Inc. is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, Palantir Technologies Inc. is presently trading at a Forward P/E ratio of 107.95. This signifies a premium in comparison to the average Forward P/E of 20.36 for its industry.
It is also worth noting that PLTR currently has a PEG ratio of 1.95. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. As the market closed yesterday, the Internet – Software industry was having an average PEG ratio of 1.14.
