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Palantir Technologies Inc. (PLTR) Falls More Steeply Than Broader Market: What Investors Need to Know

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Palantir Technologies Inc. (PLTR - Free Report) closed at $36.46 in the latest trading session, marking a -1.99% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.93%. Meanwhile, the Dow lost 0.41%, and the Nasdaq, a tech-heavy index, lost 1.53%.

Prior to today's trading, shares of the company had gained 18.17% over the past month. This has outpaced the Business Services sector's gain of 1.6% and the S&P 500's gain of 2.17% in that time.

Investors will be eagerly watching for the performance of Palantir Technologies Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $0.09, up 28.57% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $705.1 million, indicating a 26.33% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.36 per share and revenue of $2.76 billion. These totals would mark changes of +44% and +24.15%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Palantir Technologies Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Palantir Technologies Inc. currently has a Zacks Rank of #2 (Buy).

In the context of valuation, Palantir Technologies Inc. is at present trading with a Forward P/E ratio of 104.06. This valuation marks a premium compared to its industry's average Forward P/E of 24.14.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 71, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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