1 Stock-Split Stock to Buy Now -- It Has More Upside Than Palantir Technologies, According to Wall Street

Palantir Technologies (NASDAQ: PLTR) is one of the hottest stocks on the market. Shares have climbed 130% this year, and Wall Street still sees room for investors to profit. Among 29 analysts, the median target price is $200 per share. That implies 17% upside from the current share price of $171.

However, Wall Street sees more potential profit in O'Reilly Automotive (NASDAQ: ORLY), a company that executed a 15-for-1 stock split in June 2025. Among 30 analysts, the median target price is $113 per share. That implies 20% upside from its current share price of $94.

Here's what investors should know about Palantir and O'Reilly Automotive.

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1. Palantir Technologies

Palantir doubled down on artificial intelligence (AI) with it introduction of AIP in 2023. AIP is a large language model orchestration tool that lets developers build generative AI features into business processes and applications. It complements the core products Gotham and Foundry, which are used for data unification and analytics by customers in the public and private sectors.

Palantir has an important advantage in its unique ontology-based software architecture. An ontology is a framework that integrates operational data, business assets, and employee actions to create a digital twin that supports better decision-making. Importantly, machine learning (ML) models can be applied to the ontology data to create a feedback loop that results in continuous improvements over time.

The International Data Corporation (IDC) last year recognized Palantir as the market leader in decision intelligence platforms, and Forrester Research recognized the company as a leader in AI/ML platforms. That puts Palantir in an enviable position. Grand View Research expects data analytics spending to increase at 29% annually through 2030, driven in large part by adoption of artificial intelligence tools.

However, Palantir is one of the most expensive software stocks in history. Its current price-to-sales (PS) ratio of 115 is nearly three times higher than the next closest company in the S&P 500 (SNPINDEX: ^GSPC), which is AppLovin at 38 times sales. No software company has ever sustained a valuation anywhere close to the current multiple, according to Brent Thill at Jefferies.

2. O'Reilly Automotive

O'Reilly Automotive is a leading specialty retailer of aftermarket automotive parts, tools, equipment, and accessories. The company operates about 6,500 stores across North America, and it serves both DIY (do-it-yourself) and professional customers. O'Reilly has a key advantage in its robust distribution network, which helps it retain customers by providing "timely access to a broad range of products."

Importantly, while O'Reilly will be hurt to some degree by tariffs on imported automobiles and parts, duties imposed by the Trump administration may actually be a net benefit for the company. That's because the 25% tax assessed on automotive imports will make new cars more expensive, thereby encouraging consumers to service older vehicles rather than purchase new ones.

O'Reilly reported encouraging third-quarter financial results. Revenue increased 8% to $4.7 billion, an acceleration from the previous quarter driven by 55 new store openings and a 5.6% increase in same-store sales. Meanwhile, generally accepted accounting principles (GAAP) net income increased 12% to $0.85 per diluted share due to a combination of stock buybacks and a 20-basis-point increase in operating margin.

Wall Street estimates O'Reilly's earnings will increase at 14% annually over the next three years. That makes the current valuation of 34 times earnings look somewhat expensive, but not outrageously so.

I think patient investors should consider purchasing a small position today. If shares drop 10% or more due to concerns about tariffs and the broader economy, consider using the drawdown to build a slightly larger position.

Trevor Jennewine has positions in Palantir Technologies. The Motley Fool has positions in and recommends Jefferies Financial Group and Palantir Technologies. The Motley Fool has a disclosure policy.