Palantir Technologies Inc. (PLTR) ended the recent trading session at $139.92, demonstrating a +1.91% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.96%. On the other hand, the Dow registered a gain of 0.89%, and the technology-centric Nasdaq increased by 0.94%.
The stock of company has risen by 11.35% in the past month, leading the Computer and Technology sector's gain of 2.53% and the S&P 500's gain of 0.5%.
Investors will be eagerly watching for the performance of Palantir Technologies Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.14, showcasing a 55.56% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $938.34 million, showing a 38.37% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.58 per share and a revenue of $3.92 billion, indicating changes of +41.46% and +36.75%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Palantir Technologies Inc. These revisions help to show the ever-changing nature of near-term business trends. 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 1.2% lower within the past month. Palantir Technologies Inc. is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Palantir Technologies Inc. currently has a Forward P/E ratio of 235.51. Its industry sports an average Forward P/E of 27.81, so one might conclude that Palantir Technologies Inc. is trading at a premium comparatively.
Also, we should mention that PLTR has a PEG ratio of 7.35. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.1.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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