Back to top

Image: Bigstock

Why Palantir Technologies Inc. (PLTR) Dipped More Than Broader Market Today

Read MoreHide Full Article

Palantir Technologies Inc. (PLTR - Free Report) ended the recent trading session at $22.86, demonstrating a -0.65% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.2%. On the other hand, the Dow registered a loss of 0.6%, and the technology-centric Nasdaq increased by 0.11%.

The company's stock has dropped by 7.7% in the past month, falling short of the Business Services sector's loss of 0.08% and the S&P 500's gain of 3.32%.

The investment community will be paying close attention to the earnings performance of Palantir Technologies Inc. in its upcoming release. In that report, analysts expect Palantir Technologies Inc. to post earnings of $0.08 per share. This would mark year-over-year growth of 60%. Meanwhile, the latest consensus estimate predicts the revenue to be $614.88 million, indicating a 17.08% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.33 per share and a revenue of $2.68 billion, representing changes of +32% and +20.56%, respectively, from the prior year.

Any recent changes to analyst estimates for Palantir Technologies Inc. should also be noted by investors. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. Palantir Technologies Inc. presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Palantir Technologies Inc. is at present trading with a Forward P/E ratio of 69.99. Its industry sports an average Forward P/E of 27.88, so one might conclude that Palantir Technologies Inc. is trading at a premium comparatively.

One should further note that PLTR currently holds a PEG ratio of 2.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.73.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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