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Palantir Technologies Inc. (PLTR) Dips More Than Broader Markets: What You Should Know

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Palantir Technologies Inc. (PLTR - Free Report) closed at $8.22 in the latest trading session, marking a -1.32% move from the prior day. This change lagged the S&P 500's 1.11% loss on the day. At the same time, the Dow lost 0.61%, and the tech-heavy Nasdaq lost 2.13%.

Heading into today, shares of the company had gained 24.33% over the past month, outpacing the Business Services sector's gain of 7.44% and the S&P 500's gain of 7% in that time.

Investors will be hoping for strength from Palantir Technologies Inc. as it approaches its next earnings release, which is expected to be February 13, 2023. On that day, Palantir Technologies Inc. is projected to report earnings of $0.03 per share, which would represent year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $505.95 million, up 16.88% from the year-ago period.

Investors should also note any recent changes to analyst estimates for Palantir Technologies Inc.These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.7% lower within the past month. Palantir Technologies Inc. is currently sporting a Zacks Rank of #4 (Sell).

Looking at its valuation, Palantir Technologies Inc. is holding a Forward P/E ratio of 54.92. For comparison, its industry has an average Forward P/E of 22.98, which means Palantir Technologies Inc. is trading at a premium to the group.

We can also see that PLTR currently has a PEG ratio of 1.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Technology Services was holding an average PEG ratio of 2.34 at yesterday's closing price.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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