Palantir Technologies Inc. (PLTR) ended the recent trading session at $188.71, demonstrating a -2.81% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.03%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq lost 0.09%.
The company's shares have seen an increase of 17.13% over the last month, surpassing the Computer and Technology sector's gain of 1.66% and the S&P 500's gain of 2.57%.
Analysts and investors alike will be keeping a close eye on the performance of Palantir Technologies Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.23, showcasing a 64.29% upward movement from the corresponding quarter of the prior year. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.73 per share and revenue of $4.42 billion, indicating changes of +78.05% and +54.09%, respectively, compared to the previous 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. Hence, positive alterations in estimates signify analyst optimism regarding the business 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 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).
Valuation is also important, so investors should note that Palantir Technologies Inc. has a Forward P/E ratio of 267.45 right now. For comparison, its industry has an average Forward P/E of 29.18, which means Palantir Technologies Inc. is trading at a premium to the group.
Also, we should mention that PLTR has a PEG ratio of 5.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PLTR's industry had an average PEG ratio of 1.85 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 49, finds itself in the top 20% echelons of all 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.
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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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