In the latest close session, Palantir Technologies Inc. (PLTR) was up +1.8% at $182.55. The stock's performance was ahead of the S&P 500's daily loss of 0.55%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.95%.
The stock of company has risen by 14.1% in the past month, leading the Computer and Technology sector's gain of 9.88% and the S&P 500's gain of 3.64%.
Analysts and investors alike will be keeping a close eye on the performance of Palantir Technologies Inc. in its upcoming earnings disclosure. In that report, analysts expect Palantir Technologies Inc. to post earnings of $0.17 per share. This would mark year-over-year growth of 70%. 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.
PLTR's full-year Zacks Consensus Estimates are calling for earnings of $0.65 per share and revenue of $4.17 billion. These results would represent year-over-year changes of +58.54% and +45.57%, respectively.
It is also important to note the recent changes to analyst estimates for Palantir Technologies Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. Palantir Technologies Inc. presently features a Zacks Rank of #2 (Buy).
In the context of valuation, Palantir Technologies Inc. is at present trading with a Forward P/E ratio of 277.44. Its industry sports an average Forward P/E of 32.31, so one might conclude that Palantir Technologies Inc. is trading at a premium comparatively.
It is also worth noting that PLTR currently has a PEG ratio of 6.8. 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 Internet - Software was holding an average PEG ratio of 2.32 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 70, placing it within the top 29% of over 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Palantir Technologies Inc. (PLTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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