We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two of the past four trailing quarters and matched twice, delivering an earnings surprise of 10.4% on average.
Let’s check out how PLTR is currently doing.
Stock Performance & Valuation
The stock gained 28% year to date, significantly outperforming the 6.4% rally of the industry it belongs to. PLTR is trading at a forward sales multiple of 16.93X, above its median of 14.38X over the last five years and the industry’s 6.91X.
The U.S. commercial division of the company is performing well, largely driven by AI-powered operating systems and bootcamps as the primary go-to-market strategy. Revenues for this segment increased 70% year over year in the fourth quarter of 2023, indicating substantial growth in the potential market. Commercial revenues experienced a 32% year-over-year increase. Total revenues rose 20%, and the adjusted operating margin saw a 1200 basis points growth compared to the year-ago quarter.
Liquidity
PLTR’s current ratio (a measure of liquidity) was at 5.55 at the end of the fourth quarter of 2023, higher than the prior quarter’s 5.53 and the year-ago quarter’s 5.17. A current ratio of more than 1 often indicates that a company will be easily paying off its short-term obligations.
Sales and EPS Growth Prospects
The Zacks Consensus Estimate for PLTR’s 2024 sales and EPS implies year-over-year growth of 20.6% and 32%, respectively. The estimate for EPS has remained unchanged over the past 30 days.
To Conclude
PLTR looks expensive based on Price/Sales. Since the stock has risen a whopping 28% year to date, it may undergo a correction soon, especially when it does not seem poised for an earnings beat. Our quantitative model suggests that the combination of two key elements — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — increases the odds of a positive earnings surprise. But that’s not the case with PLTR at present, as it has an Earnings ESP of 0.00% and carries a Zacks Rank #3.
Given this backdrop, it may not be a bad idea to wait for this fundamentally strong stock to undergo some correction and offer a better entry point rather than rushing to purchase the stock before earnings.
Stocks That Warrant a Look
Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.
Maximus (MMS - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter fiscal 2024 revenues is pegged at $1.3 billion, implying year-over-year growth of 6%. For earnings, the consensus mark is pegged at $1.3 per share, suggesting a 63.8% rise from the year-ago quarter’s actual. The company beat the consensus estimate in two of the past four quarters and missed twice, with an average negative surprise of 7%.
AppLovin (APP - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $970 million, indicating a rise of more than 35.6% from the year-ago quarter. The consensus mark for earnings is pegged at 57 cents per share, suggesting a rise of more than 100% from the year-ago quarter. The company beat the consensus estimate in three of the past four quarters and missed once, with an average negative surprise of 26.5%.
APP has an Earnings ESP of +2.66% and currently sports a Zacks Rank of 3. The company is scheduled to post its first-quarter results on May 8.
Image: Bigstock
Should You Buy Palantir Technologies (PLTR) Ahead of Q1 Earnings?
Palantir Technologies Inc. (PLTR - Free Report) will report its first-quarter 2024 results on May 6, after the bell.
The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two of the past four trailing quarters and matched twice, delivering an earnings surprise of 10.4% on average.
Let’s check out how PLTR is currently doing.
Stock Performance & Valuation
The stock gained 28% year to date, significantly outperforming the 6.4% rally of the industry it belongs to. PLTR is trading at a forward sales multiple of 16.93X, above its median of 14.38X over the last five years and the industry’s 6.91X.
Palantir Technologies Inc. Price and EPS Surprise
Palantir Technologies Inc. price-eps-surprise | Palantir Technologies Inc. Quote
Sales and Margin Performance
The U.S. commercial division of the company is performing well, largely driven by AI-powered operating systems and bootcamps as the primary go-to-market strategy. Revenues for this segment increased 70% year over year in the fourth quarter of 2023, indicating substantial growth in the potential market. Commercial revenues experienced a 32% year-over-year increase. Total revenues rose 20%, and the adjusted operating margin saw a 1200 basis points growth compared to the year-ago quarter.
Liquidity
PLTR’s current ratio (a measure of liquidity) was at 5.55 at the end of the fourth quarter of 2023, higher than the prior quarter’s 5.53 and the year-ago quarter’s 5.17. A current ratio of more than 1 often indicates that a company will be easily paying off its short-term obligations.
Sales and EPS Growth Prospects
The Zacks Consensus Estimate for PLTR’s 2024 sales and EPS implies year-over-year growth of 20.6% and 32%, respectively. The estimate for EPS has remained unchanged over the past 30 days.
To Conclude
PLTR looks expensive based on Price/Sales. Since the stock has risen a whopping 28% year to date, it may undergo a correction soon, especially when it does not seem poised for an earnings beat. Our quantitative model suggests that the combination of two key elements — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — increases the odds of a positive earnings surprise. But that’s not the case with PLTR at present, as it has an Earnings ESP of 0.00% and carries a Zacks Rank #3.
Given this backdrop, it may not be a bad idea to wait for this fundamentally strong stock to undergo some correction and offer a better entry point rather than rushing to purchase the stock before earnings.
Stocks That Warrant a Look
Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.
Maximus (MMS - Free Report) : The Zacks Consensus Estimate for the company’s second-quarter fiscal 2024 revenues is pegged at $1.3 billion, implying year-over-year growth of 6%. For earnings, the consensus mark is pegged at $1.3 per share, suggesting a 63.8% rise from the year-ago quarter’s actual. The company beat the consensus estimate in two of the past four quarters and missed twice, with an average negative surprise of 7%.
MMS currently has an Earnings ESP of +1.53% and a Zacks Rank of 2. The company is scheduled to declare its second fiscal quarter results on May 8. You can see the complete list of today’s Zacks #1 Rank stocks here.
AppLovin (APP - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $970 million, indicating a rise of more than 35.6% from the year-ago quarter. The consensus mark for earnings is pegged at 57 cents per share, suggesting a rise of more than 100% from the year-ago quarter. The company beat the consensus estimate in three of the past four quarters and missed once, with an average negative surprise of 26.5%.
APP has an Earnings ESP of +2.66% and currently sports a Zacks Rank of 3. The company is scheduled to post its first-quarter results on May 8.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.