Palantir Technologies Inc. (PLTR) closed at $177.21 in the latest trading session, marking a +1.01% move from the prior day. This move lagged the S&P 500's daily gain of 1.56%. Elsewhere, the Dow saw an upswing of 1.29%, while the tech-heavy Nasdaq appreciated by 2.21%.
The stock of company has risen by 2.34% in the past month, leading the Computer and Technology sector's gain of 1.06% and the S&P 500's gain of 0.41%.
The investment community will be paying close attention to the earnings performance of Palantir Technologies Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.17, reflecting a 70% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.09 billion, indicating a 50.65% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.66 per share and a revenue of $4.17 billion, signifying shifts of +60.98% and +45.57%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Palantir Technologies Inc. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.94% higher within the past month. As of now, Palantir Technologies Inc. holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Palantir Technologies Inc. is currently exchanging hands at a Forward P/E ratio of 267.03. Its industry sports an average Forward P/E of 28.54, so one might conclude that Palantir Technologies Inc. is trading at a premium comparatively.
Meanwhile, PLTR's PEG ratio is currently 6.48. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.09.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 77, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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