Palantir Technologies Inc. (PLTR) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Palantir Technologies Inc. (PLTR) ended the recent trading session at $137.55, demonstrating a -3.85% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.4%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.73%.

The company's stock has climbed by 4.28% in the past month, exceeding the Computer and Technology sector's loss of 8.37% and the S&P 500's loss of 7.34%.

Investors will be eagerly watching for the performance of Palantir Technologies Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.29, signifying a 123.08% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.54 billion, indicating a 73.72% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.31 per share and revenue of $7.22 billion, which would represent changes of +74.67% and +61.25%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Palantir Technologies Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Palantir Technologies Inc. presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Palantir Technologies Inc. has a Forward P/E ratio of 109.14 right now. This denotes a premium relative to the industry average Forward P/E of 18.36.

We can additionally observe that PLTR currently boasts a PEG ratio of 2.21. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.02.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 38% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Palantir Technologies Inc. (PLTR): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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