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

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Palantir Technologies Inc. (PLTR - Free Report) closed the most recent trading day at $183.57, moving -2.12% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.07%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 1.69%.

Prior to today's trading, shares of the company had gained 8.95% outpaced the Computer and Technology sector's gain of 1.6% and the S&P 500's gain of 0.94%.

The upcoming earnings release of Palantir Technologies Inc. will be of great interest to investors. In that report, analysts expect Palantir Technologies Inc. to post earnings of $0.23 per share. This would mark year-over-year growth of 64.29%. At the same time, our most recent consensus estimate is projecting a revenue of $1.35 billion, reflecting a 62.75% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.73 per share and a revenue of $4.42 billion, representing changes of +78.05% and +54.09%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Palantir Technologies Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Palantir Technologies Inc. is carrying a Zacks Rank of #2 (Buy).

Looking at its valuation, Palantir Technologies Inc. is holding a Forward P/E ratio of 258.32. This valuation marks a premium compared to its industry average Forward P/E of 29.42.

Investors should also note that PLTR has a PEG ratio of 5.16 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software was holding an average PEG ratio of 1.98 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 57, placing it within the top 24% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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