In the latest close session, Palantir Technologies Inc. (PLTR) was up +1.47% at $182.17. The stock exceeded the S&P 500, which registered a loss of 0.38% for the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.67%.
Prior to today's trading, shares of the company had gained 15.01% outpaced the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 4.06%.
The investment community will be paying close attention to the earnings performance of Palantir Technologies Inc. in its upcoming release. On that day, Palantir Technologies Inc. is projected to report earnings of $0.17 per share, which would represent year-over-year growth of 70%. Alongside, our most recent consensus estimate is anticipating revenue of $1.09 billion, indicating a 50.65% upward movement from the same quarter last 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.
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, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. Currently, Palantir Technologies Inc. is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Palantir Technologies Inc. is presently trading at a Forward P/E ratio of 273.26. This denotes a premium relative to the industry average Forward P/E of 30.
Also, we should mention that PLTR has a PEG ratio of 6.63. 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 average PEG ratio for the Internet - Software industry stood at 2.35 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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