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Palantir Technologies Inc. (PLTR) Gains But Lags Market: What You Should Know

Palantir Technologies Inc. (PLTR) closed at $8.24 in the latest trading session, marking a +1.35% move from the prior day. This change lagged the S&P 500's 2.59% gain on the day. Meanwhile, the Dow gained 2.66%, and the Nasdaq, a tech-heavy index, added 0.07%.

Coming into today, shares of the company had gained 9.86% in the past month. In that same time, the Business Services sector lost 11.17%, while the S&P 500 lost 9.22%.

Wall Street will be looking for positivity from Palantir Technologies Inc. as it approaches its next earnings report date. The company is expected to report EPS of $0.03, down 25% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $474.58 million, up 21.02% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.06 per share and revenue of $1.9 billion. These totals would mark changes of -53.85% and +23.3%, respectively, from last year.

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

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Palantir Technologies Inc. is currently sporting a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Palantir Technologies Inc. has a Forward P/E ratio of 143.47 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.72.

We can also see that PLTR currently has a PEG ratio of 4.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Technology Services stocks are, on average, holding a PEG ratio of 1.77 based on yesterday's closing prices.

The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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