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Why the Market Dipped But Palantir Technologies Inc. (PLTR) Gained Today

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Palantir Technologies Inc. (PLTR - Free Report) closed the latest trading day at $16.20, indicating a +0.56% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.17%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.27%.

Prior to today's trading, shares of the company had gained 14.01% over the past month. This has outpaced the Business Services sector's loss of 5.22% and the S&P 500's loss of 3.95% in that time.

Analysts and investors alike will be keeping a close eye on the performance of Palantir Technologies Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on November 2, 2023. The company is forecasted to report an EPS of $0.06, showcasing a 500% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $555.02 million, indicating a 16.14% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.23 per share and revenue of $2.22 billion, which would represent changes of +283.33% and +16.25%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Palantir Technologies Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.12% upward. Right now, Palantir Technologies Inc. possesses a Zacks Rank of #2 (Buy).

With respect to valuation, Palantir Technologies Inc. is currently being traded at a Forward P/E ratio of 70.43. This indicates a premium in contrast to its industry's Forward P/E of 22.05.

Also, we should mention that PLTR has a PEG ratio of 1.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Technology Services industry currently had an average PEG ratio of 1.39 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 Zacks.com.


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