Back to top

Image: Bigstock

Palantir Technologies Inc. (PLTR) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Palantir Technologies Inc. (PLTR - Free Report) closed at $15.88 in the latest trading session, marking a -0.75% move from the prior day. This change lagged the S&P 500's 0.01% gain on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.67%.

Prior to today's trading, shares of the company had gained 5.4% over the past month. This has outpaced the Business Services sector's loss of 4.6% and the S&P 500's loss of 4.45% in that time.

Palantir Technologies Inc. will be looking to display strength as it nears its next earnings release. In that report, analysts expect Palantir Technologies Inc. to post earnings of $0.06 per share. This would mark year-over-year growth of 500%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $555.02 million, up 16.14% from the year-ago period.

PLTR's full-year Zacks Consensus Estimates are calling for earnings of $0.23 per share and revenue of $2.22 billion. These results would represent year-over-year changes of +283.33% and +16.25%, respectively.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 4.26% higher within the past month. Palantir Technologies Inc. currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Palantir Technologies Inc. currently has a Forward P/E ratio of 70.44. This represents a premium compared to its industry's average Forward P/E of 22.89.

It is also worth noting that PLTR currently has a PEG ratio of 1.24. 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 1.42 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 108, which puts it in the top 43% 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.

To follow PLTR in the coming trading sessions, be sure to utilize

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Palantir Technologies Inc. (PLTR) - free report >>

Published in