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Palantir Technologies Inc. (PLTR) Exceeds Market Returns: Some Facts to Consider

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Palantir Technologies Inc. (PLTR - Free Report) closed the most recent trading day at $181.59, moving +1.93% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.07%. Meanwhile, the Dow experienced a rise of 1.12%, and the technology-dominated Nasdaq saw an increase of 1.37%.

Shares of the company have depreciated by 2.32% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.68%, and the S&P 500's gain of 1.08%.

The investment community will be paying close attention to the earnings performance of Palantir Technologies Inc. in its upcoming release. The company is slated to reveal its earnings on November 3, 2025. It is anticipated that the company will report an EPS of $0.17, marking a 70% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.09 billion, indicating a 50.65% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.66 per share and revenue of $4.17 billion, indicating changes of +60.98% and +45.57%, respectively, compared to the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Palantir Technologies Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.94% upward. Palantir Technologies Inc. is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, Palantir Technologies Inc. is at present trading with a Forward P/E ratio of 271.16. For comparison, its industry has an average Forward P/E of 29.15, which means Palantir Technologies Inc. is trading at a premium to the group.

It is also worth noting that PLTR currently has a PEG ratio of 6.58. 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 average PEG ratio for the Internet - Software industry stood at 1.91 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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