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Why Palantir Technologies Inc. (PLTR) Outpaced the Stock Market Today

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In the latest market close, Palantir Technologies Inc. (PLTR - Free Report) reached $21.91, with a +0.05% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq appreciated by 0.12%.

The the stock of company has fallen by 8.75% in the past month, lagging the Business Services sector's loss of 4.2% and the S&P 500's loss of 0.9%.

Market participants will be closely following the financial results of Palantir Technologies Inc. in its upcoming release. The company plans to announce its earnings on May 6, 2024. The company is forecasted to report an EPS of $0.08, showcasing a 60% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $614.88 million, showing a 17.08% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.33 per share and revenue of $2.68 billion. These totals would mark changes of +32% and +20.56%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Palantir Technologies Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Palantir Technologies Inc. presently features a Zacks Rank of #3 (Hold).

Investors should also note Palantir Technologies Inc.'s current valuation metrics, including its Forward P/E ratio of 66.62. This expresses a premium compared to the average Forward P/E of 23.1 of its industry.

It is also worth noting that PLTR currently has a PEG ratio of 2.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PLTR's industry had an average PEG ratio of 1.63 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 100, this industry ranks in the top 40% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.


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