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Why Palantir Technologies Inc. (PLTR) Dipped More Than Broader Market Today

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Palantir Technologies Inc. (PLTR - Free Report) closed the latest trading day at $16.68, indicating a -0.66% change from the previous session's end. The stock's change was less than the S&P 500's daily loss of 0.07%.

Prior to today's trading, shares of the company had lost 6.04% over the past month. This has lagged the Business Services sector's gain of 2.84% and the S&P 500's gain of 3.98% in that time.

Investors will be eagerly watching for the performance of Palantir Technologies Inc. in its upcoming earnings disclosure. In that report, analysts expect Palantir Technologies Inc. to post earnings of $0.08 per share. This would mark year-over-year growth of 100%. Alongside, our most recent consensus estimate is anticipating revenue of $603.48 million, indicating a 18.65% upward movement from the same quarter last year.

Investors might also notice recent changes to analyst estimates for Palantir Technologies Inc. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Palantir Technologies Inc. boasts a Zacks Rank of #3 (Hold).

With respect to valuation, Palantir Technologies Inc. is currently being traded at a Forward P/E ratio of 57.16. This expresses a premium compared to the average Forward P/E of 23.44 of its industry.

It's also important to note that PLTR currently trades at a PEG ratio of 0.96. 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. By the end of yesterday's trading, the Technology Services industry had an average PEG ratio of 1.57.

The Technology Services industry is part of the Business Services sector. Currently, this industry holds a Zacks Industry Rank of 56, positioning it in the top 23% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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